Multiple choice

What would be the compound interest obtained on an amount of Rs. 84500 at the rate of 10 p.c.p.c after 3 years?

  1. Rs. 27969.50

  2. Rs. 28269.20

  3. Rs. 27689.50

  4. Rs. 27862.50

  5. None of these
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A Correct answer
Explanation

CI = P[(1 + r/100)^n - 1] = 84500[(1 + 0.1)^3 - 1] = 84500[1.331 - 1] = 84500 × 0.331 = Rs. 27969.50 exactly. The compound interest formula applied to principal 84500 at 10% for 3 years yields this result.

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