What will be the compound interest on a sum of Rs 25,000 after 3 years

1.	What will be the compound interest on a sum of Rs 25,000 after 3 years at the rate of 12% per annum?1. Rs 9000.302. Rs 97203. Rs 10123.204. Rs 10483.20
Answer» Correct Answer - Option 3 : Rs 10123.20 Given: Principal P = Rs. 25000 Time n = 3 years Rate r= 12% per annum Formula used: Compound interest = Principal × [1 + r/100]n – Principal Calculation: Compound interest = 25000× [1 + 12/100]3- 25000 ⇒ 25000× [28/25× 28/25× 28/25] - 25000 ⇒ (8/5) × 28 × 28 ×28 - 25000 ⇒ 35123.20 - 25000 = 10,123.20 ∴ The compound interest = Rs. 10,123.20

What will be the compound interest on a sum of Rs 25,000 after 3 years at the rate of 12% per annum?1. Rs 9000.302. Rs 97203. Rs 10123.204. Rs 10483.20

Answer» Correct Answer - Option 3 : Rs 10123.20

Given:

Principal P = Rs. 25000

Time n = 3 years

Rate r= 12% per annum

Formula used:

Compound interest = Principal × [1 + r/100]n – Principal

Calculation:

Compound interest = 25000× [1 + 12/100]3- 25000

⇒ 25000× [28/25× 28/25× 28/25] - 25000

⇒ (8/5) × 28 × 28 ×28 - 25000

⇒ 35123.20 - 25000 = 10,123.20

∴ The compound interest = Rs. 10,123.20