Find the compound interest on ₹8,000 at 10% per annum for 3 years 6 months, compounded annually.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. ₹3,180.40.
Amount after 3 years
= 8000 × 110/100 × 110/100 × 110/100
= 10648
SI = (P × R × T)/100
6 months = 1/2 years
SI for next 6 months on ₹10648 = (10648 × 10 × 1/2)/100 = 532.40
Total amount = 10648 + 532.40 = 11180.40
SI = 11180.40 - 8000 = 3180.40