What is the compound interest on a sum of ₹25,000 after three years at a rate of 12 percent per annum interest compounded yearly?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹10,123.20.
Principal (P) = ₹25,000
Time (T) = 3 years
Rate (R) = 12 %
Compound interest = P (1 + R/100)T - P
C.I. = 25000 (1 + 12/100)3 - 25000
C.I. = 25000 (28/25)3 - 25000
C.I. = 25000 × 6327/15625 = ₹10123.2