Multiple choice

Calculate the compound interest for Rs 25,000 for 3 years at the rate of 6% per annum compounded annually.

  1. $4775.40$
  2. $4776.40$
  3. $4660$

  4. None of these
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A Correct answer
Explanation

Amount = P(1 + r/100)^n = 25000(1.06)^3 = 25000 * 1.191016 = 29775.40. Compound Interest = 29775.40 - 25000 = 4775.40.

AI explanation

Using the compound interest formula A = P(1 + R/100)^N, the final amount is 25000(1 + 6/100)^3 = 25000(1.191016) = Rs. 29775.40. The compound interest is the final amount minus the principal, which equals 29775.40 - 25000 = Rs. 4775.40.

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