Multiple choice

The simple interest accrued on Rs 36000 at the end of three years is Rs. 12000.What would be compound interest accrued on the same amount for same time period.(Approx.)

  1. 13380

  2. 13570

  3. 14250

  4. 13940

  5. 13900

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Simple interest for 3 years is 12000 on 36000, so annual interest is 4000. Rate = 4000/36000×100 = 11.11%. Compound interest for 3 years at 11.11%: 36000×(1.1111³-1) = 36000×0.3717 = 13381 (approximately). Option A (13380) is closest.