Multiple choice

Find the compound interest earned on a sum of Rs. 1250 deposited in a bank at 8% p.a. for 3 years.

  1. Rs.304.64

  2. Rs.324.64

  3. Rs.300

  4. Rs.312
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B Correct answer
Explanation

Principal = 1250, Rate = 8%, Time = 3 years. Amount = 1250 * (1 + 0.08)^3 = 1250 * 1.259712 = 1574.64. CI = 1574.64 - 1250 = 324.64.

AI explanation

Using the compound interest formula, the amount equals 1250 times 1.08 cubed. The calculation gives 1250 times 1.259712, which equals 1574.64. Subtracting the principal from this amount gives the compound interest earned, which is 1574.64 minus 1250 equals Rs. 324.64.

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