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Multiple choice

What would be the compound interest obtained on an amount of Rs. 50,000 at the rate of 10% p.a., compounded annually, after 4 years?

  1. 22075

  2. 29215

  3. 23205

  4. 24225

  5. None

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Compound interest = P * ((1 + r/100)^n - 1) = 50000 * ((1.1)^4 - 1) = 50000 * (1.4641 - 1) = 50000 * 0.4641 = 23205.

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