Multiple choice

A sum of Rs.$100,000$ is invested for $4$ years at $13$ % per annum compound interest. Calculate the interest.

  1. $61000$
  2. $62000$
  3. $63000$
  4. $64000$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Compound interest is calculated as A = P(1 + r/100)^n. For P=100,000, r=13, and n=4, A = 100,000 * (1.13)^4 = 100,000 * 1.63047361 = 163,047.36. The interest is A - P = 63,047.36, which rounds to 63,000.

AI explanation

The compound interest is calculated as the final amount minus the principal, where the final amount equals 100000 times (1 plus 0.13) raised to the power of 4. Evaluating the power gives approximately 1.63047, so the final amount is roughly Rs. 163047. Subtracting the principal of Rs. 100000 from this total gives an interest of approximately Rs. 63000.

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