Question

Tick the correct answer in each of the following:

The compound interest on Rs 10000 at $10\%$ per annum for 3 years, compounded annually. is

(a) Rs 1331 (b) Rs 3310 (c) Rs 3130 (d) Rs 13310

Answer 1

$\text{Principal (P) = Rs. 10000}\text{Rate (R) =}10\%p.a.\text{Period (n) = 3 years}\therefore \text{Amount = P}{(1+\frac{R}{100})}^n=Rs.10000{(1+\frac{10}{100})}^3=Rs.10000\times \frac{11}{10}\times \frac{11}{10}\times \frac{11}{10}=Rs.13310\text{C.I. = A - P = Rs. 13310 - 10000}=Rs.3310\left(b\right)$