Multiple choice

A sum Rs 16896 was deposited in a bank which offers compound interest of 12.5 % compounded annually. Find the intereset of 3 years and 4 months-

  1. 9005.125 Rs

  2. 8163.375 Rs

  3. 8433.33 Rs

  4. 7553.25 Rs

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

For compound interest at 12.5%: After year 1: 16896 × 1.125 = 19008. After year 2: 19008 × 1.125 = 21384. After year 3: 21384 × 1.125 = 24057. For 4 months: 24057 × 0.125 × (4/12) = 1002.375. Total amount = 24057 + 1002.375 = 25059.375. Interest = 25059.375 - 16896 = 8163.375. This matches option B exactly.

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