Multiple choice

On what sum will the compound interest for 3 years at 5% per annum amount to Rs. 1,261?

  1. Rs. 8,500

  2. Rs. 9,500

  3. Rs. 9,000

  4. Rs. 8,000
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Using the compound interest formula A = P(1 + r/100)^n, where A = P + 1261. So, P(1.05^3 - 1) = 1261. P(1.157625 - 1) = 1261, P(0.157625) = 1261. P = 1261 / 0.157625 = 8000.

AI explanation

Using the compound interest formula A = P * (1 + R/100)^T, the amount is 8000 * (1 + 5/100)^3 = 8000 * 1.157625 = Rs 9,261. The compound interest is the amount minus the principal, which is 9261 - 8000 = Rs 1,261. Therefore, the sum is Rs 8,000.

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