Multiple choice

Calculate the amount and compound interest on (i) INR $10800$ for $3$ years at $12\frac{1}{2}\% $ per annum compounded annually .

  1. $4555.25$
  2. $4050.42$
  3. $4577.34$
  4. $4566.20$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Principal = 10800, Rate = 12.5% = 1/8. Amount = 10800 * (1 + 1/8)^3 = 10800 * (9/8)^3 = 10800 * 729 / 512 = 15377.34. Interest = 15377.34 - 10800 = 4577.34.

AI explanation

Using the compound interest formula, the amount equals 10800 multiplied by the quantity 1 plus 0.125, all raised to the power of 3. This simplifies to 10800 times 1.423828125, resulting in a total amount of INR 15377.34. Subtracting the original principal of 10800 from this amount gives a compound interest of INR 4577.34.

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