Question

What is the compound interest on a sum of ₹6000 for a time period of 3 years at the rate of 15% per annum?

• A. ₹3000.5
• B. ₹3100.25
• C. ₹3125.25
• D. ₹3150.75

Answer 1

The correct option is C

₹3125.25

Given
Principal (P) = ₹ 6000
Rate (R) = 15%
Time Period, T = 3 years

We know that,

Total Amount, A = P${(1+\frac{R}{100})}^T$
On substituting the values in the above equation, we get:

A = 6000${(1+\frac{15}{100})}^3$

= 6000${(1+\frac{3}{20})}^3$

= 6000${\left(\frac{23}{20}\right)}^3$

= 6000$\times$ $\frac{23}{20}$ $\times$ $\frac{23}{20}$$\times$ $\frac{23}{20}$

= ₹9125.25

Compound Interest = Amount − Principal

= ₹9125.25 − 6000

= ₹3125.25

Hence, the compound interest is ₹3125.25.