Question

Raveena invested Rs. ‘a’ in a bank offering 10% compound interest for three years compounded annually. Find the value of ‘a’ if the interest earned by Raveena is Rs. 15888 after 3 years.

• A. Rs. 45000
• B. Rs. 48000
• C. Rs. 42000
• D. Rs. 44000
• E. Rs. 40000

Answer 1

The correct option is B Rs. 48000

Interest earned by Raveena = a × [(1 + 0.10)³ – 1] = 15888

a × (1.331 – 1) = 15888

⇒ 0.331a = 15888

⇒ a = 48000

So, the value of a = Rs. 48000

Hence, option B is correct.