Multiple choice

What would be the compound interest accrued on an amount of Rs 8500 @ the rate of 15% p.a. in three years ? (Decimal after two numbers)

  1. Rs. 4827.43

  2. Rs. 3927.43

  3. Rs. 4937.43

  4. Rs. 4927.43

  5. Rs. 4427.43
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Compound Interest formula: A = P(1 + r/100)ⁿ. Here P = 8500, r = 15%, n = 3. A = 8500(1.15)³ = 8500 × 1.520875 = 12927.44. CI = A - P = 12927.44 - 8500 = 4427.43. Round to two decimal places as specified. The key is applying compound interest formula correctly for 3 years.

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