Multiple choice

Find the compound interest on Rs. 21,600 for 3 months at 20% per annum, compounded monthly.

  1. Rs. 1098.1

  2. Rs. 1147.8

  3. Rs. 2167.6

  4. Rs. 2169.4
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A Correct answer
AI explanation

Using the compound interest formula for monthly compounding, we calculate the amount as 21600 multiplied by (1 + 20/1200) raised to the power of 3. This simplifies to 21600 multiplied by (101/100) cubed, which gives 21600 multiplied by 1.030301, resulting in a total amount of Rs. 22698.1. Subtracting the principal of Rs. 21600 gives the compound interest of Rs. 1098.1.

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