Multiple choice

Find the interest on Rs. 25,000 at 12% p.a. compounded annually for 3 years.

  1. Rs. 9,000

  2. Rs. 9,833.40

  3. Rs. 10,123.20

  4. Rs. 10,678.90

  5. NA
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Amount = 25000 * (1.12)^3 = 25000 * 1.404928 = 35123.20. Interest = 35123.20 - 25000 = 10123.20.

AI explanation

Using the compound interest formula, Amount = Principal x (1 + R/100)^T, the amount equals 25000 x (1 + 12/100)^3. This calculates to 25000 x 1.404928, resulting in a total amount of Rs. 35123.20. The compound interest is the amount minus the principal, so 35123.20 minus 25000 equals Rs. 10,123.20.

Keep practicing — related questions