Find CI on ₹1000 for 3 years at 10% p.a.?
Show answer & explanation
Correct answer: A
Explanation
Has been given :
Principal = Rs 1000
Interest rate = 10% per annum
time = 3 years
According to the formula:
Mixture A = P(1 + r/100)³
Compound interest = A − P
A = 1000(1 + 10/100)³
= 1000(1.1)³
= 1000 × 1.331
= 1331
Compound interest = 1331 − 1000 = 331
Compound interest = Rs 331