Multiple choice

Find the amount and compound interest on $Rs. 25,625$ at $4$% per annum for $3$ years compounded annually(approx.).

  1. $A= 28825,  C.I= 3200$
  2. $A= 28825,  C.I= 3000$
  3. $A= 28025,  C.I= 3000$
  4. $A= 20025,  C.I= 3200$
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A Correct answer
Explanation

Amount = P * (1 + r/100)^n = 25625 * (1.04)^3 = 25625 * 1.124864 = 28824.64. Compound Interest = 28824.64 - 25625 = 3199.64. Rounding gives A=28825 and CI=3200.

AI explanation

Using the compound interest formula, Amount = P * (1 + R/100)^T. Substituting the given values gives Amount = 25625 * (1 + 4/100)^3, which simplifies to 25625 * (1.04)^3. Calculating this gives an approximate amount of 28825, and the compound interest is Amount - Principal, which equals 28825 - 25625 = 3200.

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