Multiple choice

Find the compound interest of $Rs. 800$ for $3$ years at $5\ p.c.$

  1. $Rs. 920$
  2. $Rs. 850$
  3. $Rs. 926.10$
  4. $Rs. 126.10$
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D Correct answer
Explanation

Compound interest = P * ((1 + r/100)^n - 1) = 800 * ((1 + 5/100)^3 - 1) = 800 * (1.05^3 - 1) = 800 * (1.157625 - 1) = 800 * 0.157625 = 126.10.

AI explanation

Using the compound interest formula, Amount equals Principal multiplied by the quantity (1 plus R divided by 100) raised to the power of n, we calculate the total amount as 800 multiplied by the quantity 1.05 raised to the power of 3. This gives 800 multiplied by 1.157625, resulting in a total amount of Rs. 926.10. Subtracting the original principal of Rs. 800 from this amount gives the compound interest of Rs. 126.10. The result is Rs. 126.10.

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