Multiple choice

What will be compound interest obtained on an amount of Rs. 8800 at 5 p.c.p.a. after 3 years?

  1. Rs. 1329.20

  2. Rs. 1348.75

  3. Rs. 1335.26

  4. Rs. 1387.10

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

Compound Interest formula: A = P(1 + r/100)ⁿ. Here P = 8800, r = 5%, n = 3. A = 8800 × (1.05)³ = 8800 × 1.157625 = Rs. 10187.10. CI = A - P = 10187.10 - 8800 = Rs. 1387.10. Option A (1329.20) would be the simple interest for 3 years at 5%. Option B and C are incorrect calculations.

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