Multiple choice

What will be compound interest earned on an amount of Rs 7500 @ 9 p.c.p.a after 3 years ?

  1. Rs. 2812.7175

  2. Rs. 2612.7175

  3. Rs. 2412.7175

  4. Rs. 2212.7175

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

Use compound interest formula A = P(1 + r/100)^n. Here P = 7500, r = 9%, n = 3. Amount = 7500 × (1.09)^3 = 7500 × 1.295029 = 9,712.7175. Compound Interest = Amount - Principal = 9,712.7175 - 7,500 = 2,212.7175. Remember that compound interest includes interest on previously earned interest, unlike simple interest which is only on the principal.

Keep practicing — related questions