Question : What will be the amount of Rs. 12500 at the rate of 20% per annum compounded yearly for 3 years?
Option 1: Rs. 21080
Option 2: Rs. 21560
Option 3: Rs. 20600
Option 4: Rs. 21600
Correct Answer: Rs. 21600
Solution :
Principal, P = Rs. 12500
Rate of interest, $r$ = 20%
Time, $n$ = 3 years
According to the question,
Amount = P[$(1+\frac{r}{100})^n$], where P is principal, $r$ is the rate of interest compounded annually for $n$ years.
⇒ Amount = 12500$(1+\frac{20}{100})^3$
= 12500$(\frac{6}{5})^3$
= 12500$×\frac{216}{125}$
= Rs. 21600
Hence, the correct answer is Rs. 21600.
Related Questions
Know More about
Staff Selection Commission Sub Inspector ...
Result | Eligibility | Application | Selection Process | Cutoff | Admit Card | Preparation Tips
Get Updates Brochure
Your Staff Selection Commission Sub Inspector Exam brochure has been successfully mailed to your registered email id “”.
