Multiple choice

Find compound interest on Rs. 5000 at 10% per annum for 3 years.

  1. Rs. 1565

  2. Rs. 1445

  3. Rs. 1210

  4. Rs. 1655

  5. Rs. 1855
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The compound interest formula is A = P(1 + r/100)^n. For P=5000, r=10, n=3, A = 5000 * (1.1)^3 = 5000 * 1.331 = 6655. The interest is 6655 - 5000 = 1655.

AI explanation

Using the compound interest formula, the amount is calculated as 5000 times 1.10 cubed, which equals 6655. The compound interest is found by subtracting the principal from the amount, so 6655 minus 5000 gives Rs. 1655.

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