Multiple choice

A bank pays interest at the rate of $8\%$ p.a compounded yearly. Find the interest by simple interest method if Rs.$8000$ was deposited for $3$ years.

  1. $1000$
  2. $2077.7$
  3. $2000$
  4. $3456$
Reveal answer Fill a bubble to check yourself
B Correct answer
AI explanation

Using the compound interest formula for simple interest equivalent, we calculate the amount as 8000 multiplied by 1.08 raised to the power of 3. The total amount evaluates to 10,077.696. Subtracting the original principal of 8000 from this total amount gives a compound interest of 2077.7.

Keep practicing — related questions