Multiple choice

Find the compound interest (CI) of 3 years on a sum of Rs. 12000 if the rate of interest is 15\%.

  1. 6775

  2. 6250.5

  3. 6420.8

  4. 6590.5
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Using compound interest formula: A = P(1 + r/100)³. Here P = 12000, r = 15%, n = 3. A = 12000 × (1.15)³ = 12000 × 1.520875 = 18250.5. CI = A - P = 18250.5 - 12000 = 6250.5. Options A, C, and D are incorrect - they may result from using simple interest formula or miscalculating the compound factor.

Keep practicing — related questions