Multiple choice

What is the compound interest accrued by Gaurav on an amount of Rs. 18000 at the rate of 10% per annum at the end of three years?

  1. Rs. 23958

  2. Rs. 5958

  3. Rs. 4680

  4. Rs. 23460
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Compound interest formula: A = P(1 + r/100)^t. Amount = 18000 × (1.10)^3 = 18000 × 1.331 = 23958. Compound Interest = Amount - Principal = 23958 - 18000 = 5958. The interest earned over 3 years at 10% compounded annually is Rs. 5958.

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