If Rajneesh deposited Rs.300000 in a bank for three years at the rate of 8% compounded annually then, find the interest earned.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Rs.3,77,913.60.
We know that,
C.I. = P(1 + R/100)T - P
where, C.I. = Compound Interest, P = Principal, R = Rate, and T = Time
C.I. = 300000(1 + 8/100)3
C.I. = 300000 × 1.08 × 1.08 × 1.08
C.I. = Rs.377913.6