Multiple choice

Find the compound interest earned on a sum of Rs.2500 deposited in a bank at 6% p.a. for 3 years.

  1. Rs. 470

  2. Rs. 477.54

  3. Rs. 450

  4. Rs. 460
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Compound interest = P * ((1 + r/100)^n - 1). Here P = 2500, r = 6, n = 3. CI = 2500 * ((1.06)^3 - 1) = 2500 * (1.191016 - 1) = 2500 * 0.191016 = 477.54.

AI explanation

Using the compound interest formula for the total amount, A = P(1 + R/100)^T, we calculate 2500(1 + 0.06)^3. This evaluates to 2500(1.06)^3 = 2500(1.191016) = Rs. 2977.54. The compound interest earned is the total amount minus the principal, which is 2977.54 - 2500 = Rs. 477.54.

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