A sum of Rs. 4500 is lent at compound interest. If the rate of interest is 10% per annum (interest is compounded annually), then what will be the amount after 3 years?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Rs. 5989.5.
| Understanding/Application |
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Principal sum = Rs. 4500 Rate of interest = 10% Time = 3 years Amount under C.I. = P(1 + r/100)t |
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A = 4500(1 + 10/100)3 A = 4500(1.1)3 A = Rs. 5989.5 |