Multiple choice

Mohit invests a sum of Rs. 41,250 at the rate of 6% per annum. What approximate compound interest will he obtain at the end of 3 years?

  1. Rs. 8,100

  2. Rs. 7,425

  3. Rs. 8,210

  4. Rs. 7,879
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Compound interest = P * ((1 + r/100)^n - 1). CI = 41250 * ((1.06)^3 - 1) = 41250 * (1.191016 - 1) = 41250 * 0.191016 = 7879.41. The closest option is 7879.

AI explanation

Using the compound interest formula, we calculate the amount as 41250 multiplied by 1.06 cubed. This equals 41250 multiplied by 1.191016, which gives a total amount of approximately Rs. 49129.0. Subtracting the principal of 41250 gives a compound interest of Rs. 7879.

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