Multiple choice

What total amount would Anushika get at the end of three years if she invests an amount of Rs. 37000 in a scheme which offers compound interest @ 5.5 p.c.p.a.

  1. Rs. 45046.52

  2. Rs. 43446.92

  3. Rs. 43066.52

  4. Rs. 45406.90

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

Amount = Principal × (1 + rate/100)^n = 37000 × (1 + 5.5/100)^3 = 37000 × (1.055)^3 = 37000 × 1.174241... = Rs. 43446.92. Year 1: 37000 × 1.055 = 39035, Year 2: 39035 × 1.055 = 41181.93, Year 3: 41181.93 × 1.055 = 43446.92.

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