Multiple choice

Mr. Rao invests a sum of Rs. 41,250 at the rate of 6 p.c.p.a. What approximate amount of compound interest will he obtain at the end of 3 year?

  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

Using compound interest formula: A = P(1+r)^t = 41250(1.06)³ ≈ 49129. CI = A - P = 49129 - 41250 = 7879. For approximation: 41250 × 0.191 ≈ 7879.

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