Find the compound interest on ₹8,000 at 12% per annum for 3 years 4 months,…

2025

Find the compound interest on ₹8,000 at 12% per annum for 3 years 4 months, compounded annually.

  1. A.

    ₹3,000

  2. B.

    ₹4,000

  3. C.

    ₹3,689

  4. D.

    ₹3,600

Attempted by 3 students.

Show answer & explanation

Correct answer: C

For 3 complete years, amount = 8000 x 1.12^3 = 11239.424. For the remaining 4 months, simple interest on this amount at 12% per annum is 4%, so final amount is about 11689. Compound interest = 11689 - 8000 = 3689.

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