If the amount on a certain principal in 3 years at a 12% rate of interest compounded annually is Rs 12,000, then what will be the amount (in Rs) after the 4th year?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 13440.
Amount = Principal + Interest
Amount in 4th year at the rate of 12% will be
Amount = 12000 + (12/100) × 12000
Amount = (12000 + 1440)
Amount = Rs.13440