Question : What is the compound interest on a sum of INR 25,000 after three years at a rate of 12 percent per annum interest compounded yearly?
Option 1: INR 10,123.20
Option 2: INR 9,824.00
Option 3: INR 10,520.00
Option 4: INR 9,956.86
Correct Answer: INR 10,123.20
Solution :
Principal amount,
Rate of interest,
Time of investment,
When compounded annually, Compound Interest
=
=
=
=
= 35123.2 – 25000
= 10123.2
Hence, the correct answer is INR 10,123.20.
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