What is the compound interest on (compounding annually) Rs. 14400 at the rate…
2024
What is the compound interest on (compounding annually) Rs. 14400 at the rate of 10 percent for 3 years?
- A.
Rs. 4214.8
- B.
Rs. 4712.6
- C.
Rs. 4812.6
- D.
Rs. 4766.4
Attempted by 24 students.
Show answer & explanation
Correct answer: D
To find the compound interest, we use the formula:
Compound Interest (CI) = P * ((1 + r/100)^t - 1)
Calculation
Principal (P): 14,400
Rate (r): 10%
Time (t): 3 years
Calculate the growth factor:
(1 + 10/100)^3 = (1.1)^3 = 1.331
Apply the formula:
CI = 14,400 * (1.331 - 1)
CI = 14,400 * 0.331
CI = 4,766.4