Question

What will be the compound interest on a sum of $Rs.25,000$ after $3$ years at the rate of $12$ p.c.p.a.?

• A. $Rs.9000.30$
• B. $Rs.9720$
• C. $Rs.10123.20$
• D. $Rs.10483.20$
• E. None of these

Answer 1

The correct option is C $Rs.10123.20$

$Amount=Rs.[25000\times {(1+\frac{12}{100})}^3]$
$=Rs.(25000\times \frac{28}{25}\times \frac{28}{25}\times \frac{28}{23})$
$=Rs.35123.20$
$\therefore C.I.=Rs.(35123.20-25000)=Rs.10123.20$