Multiple choice

The compound interest on Rs. 8000 for 3 years at 10% p.a. will amount to (\text{?})

  1. 2438

  2. 2648

  3. 2348

  4. 2568
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Amount after 3 years = 8000 x (1 + 10/100)^3 = 8000 x (1.1)^3 = 8000 x 1.331 = 10648. Compound Interest = Amount - Principal = 10648 - 8000 = 2648. Using the formula A = P(1 + r/100)^n, we calculate the final amount and subtract the original principal to get the interest component.

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