Multiple choice

What would be the compound interest accrued on an amount of Rs. 8000 at the rate of 15 percent per annum in three years?

  1. Rs. 4283

  2. Rs. 4051

  3. Rs. 4167

  4. Rs. 4325

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

CI = P * ((1 + r/100)^n - 1). CI = 8000 * ((1 + 0.15)^3 - 1) = 8000 * (1.520875 - 1) = 8000 * 0.520875 = 4167.

AI explanation

Using the compound interest amount formula, the total amount is 8000 multiplied by 1 plus 0.15 cubed, which equals 8000 multiplied by 1.520875, resulting in 12167. The compound interest is the total amount minus the principal, so 12167 minus 8000 equals 4167. The compound interest accrued is Rs. 4167.

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