Multiple choice

Find the interest on Rs 25000 at 12% per annum compounded annually for 3 years.

  1. $9000$
  2. $9833.40$
  3. $10123.20$
  4. $10678.90$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Compound interest formula: A = P(1 + r)^t. Here P = 25000, r = 0.12, t = 3. A = 25000 × (1.12)^3 = 25000 × 1.404928 = 35123.20. Interest = A - P = 35123.20 - 25000 = 10123.20. The compound interest earned over 3 years is Rs 10123.20.

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