Question

What is the compound interest on Rs 75000 at 6% per annum for 3 years, compounded annually

• A. 8857420
• B. 8857620
• C. 8867620
• D. 8868840
• E. 8932620

Answer 1

The correct option is B 8857620

$\text{Total amount after 3 years}=75000\times (1+\frac{6}{100}{)}^3=75000\times \frac{106}{100}\times \frac{106}{100}\times \frac{106}{100}=8932620\text{Total interest}=8932620-75000=8857620$