Simple and Compound Interest Questions

Multiple choice
  1. $Rs.\ 5061.60$
  2. $Rs.\ 5000$
  3. $Rs.\ 4050.50$
  4. $Rs.\ 5055$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Simple interest for 3 years at 12% is 36% of the principal. 0.36P = 4500, so P = 12500. Compound interest = P((1 + 0.12)^3 - 1) = 12500 * (1.404928 - 1) = 12500 * 0.404928 = 5061.60.