Multiple choice

Find the compound interest of principal 40,000 for 3 years at the rate of 4% per annum?

  1. Rs. 4894.56

  2. Rs. 4800

  3. Rs. 4600

  4. Rs. 4884.64

  5. Rs. 4994.56
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Compound Interest formula: A = P(1 + r/100)^n. Here P=40000, r=4%, n=3. A = 40000(1.04)³ = 40000 × 1.124864 = 44994.56. Compound Interest = A - P = 44994.56 - 40000 = 4994.56. The answer is Rs. 4994.56.

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