Multiple choice

What will be the compound interest on an amount of Rs. 7500 at the rate of interest 16% for 3 years compounded annually ?

  1. 4260.7

  2. 4206.72

  3. 4602.76

  4. 4260.76

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

Principal P = Rs. 7500, Rate R = 16%, Time n = 3 years. Amount A = P(1 + R/100)³ = 7500(1 + 0.16)³ = 7500(1.16)³. Calculating: 1.16³ = 1.16 × 1.16 × 1.16 = 1.3456 × 1.16 ≈ 1.5609. So A ≈ 7500 × 1.5609 = Rs. 11706.72. Compound Interest CI = A - P = 11706.72 - 7500 = Rs. 4206.72.

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