Compound interest (in Rs) on ₹ 72,800 after 3 years at the rate of 10% per annum, compounded annually is:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. ₹ 24,096.80.
Given:
Principal (P) = 72800
Rate (R) = 10%
Time (T) = 3 years
Formula used:
CI = P(1 + R/100) - P ---- (1)
Calculations:
Using equation (1), we get
⇒ CI = 72800(1 + 10/100)3 - 72800
⇒ CI = 72800(11/10)3 - 72800
⇒ CI = 96896.8 - 72800
⇒ CI = ₹ 24096.8