Multiple choice

What is the compound interest on Rs 6, 250 at 4% p. a compoundded annually for 3 years ?

  1. Rs. 780.00

  2. Rs. 789.00

  3. Rs. 788.80

  4. 780.40
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Amount = P(1 + r/100)^n = 6250 * (1 + 4/100)^3 = 6250 * (1.04)^3 = 6250 * 1.124864 = 7030.4. Compound Interest = 7030.4 - 6250 = 780.40.

AI explanation

Using the compound interest formula, the total amount is calculated as 6250 * (1 + 4/100)^3. This simplifies to 6250 * (1.04)^3, which equals 6250 * 1.124864 for a total of 7030.40. The compound interest earned is the total amount minus the principal, which is 7030.40 - 6250 = 780.40.

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