Multiple choice

How much will a principal of Rs. 5,000 invested on compound interest (compounded annually) amount to, in three years at a rate of 50% per annum?

  1. Rs. 16,375

  2. Rs. 11,250

  3. Rs. 16,875

  4. Rs. 17,275
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Amount = P * (1 + R/100)^n = 5000 * (1 + 0.5)^3 = 5000 * (1.5)^3 = 5000 * 3.375 = 16875.

AI explanation

Using the compound interest formula, the final amount equals the principal multiplied by (1 + rate divided by 100) raised to the number of years. Substituting the values gives 5000 multiplied by 1.5 cubed, which is 5000 multiplied by 3.375. The final amount after three years is Rs. 16,875.

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