What is the compound interest on a sum of ₹25,000 after three years at a rate of 12 per
cent per annum interest compounded yearly?
Show answer & explanation
Correct answer: A
Explanation
The correct Answer is Option 1 i.e. ₹10,123.20
According to the question
The rate is 12 % annually compounded for 3 years
After 3 years, Amount/Principal = (28/25)3 = 21952/15625
Hence, CI = 21952 - 15625 = 6327 units
15625 units = 25000
then CI (6327 units) = 25000 * 6327/15625) = 10123.20 Rs