What will be the compound interest on a sum of Rs. 25,000 after 3 years at the rate of 10% p.a.?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 8,275.
A = P(1 + R/100)n
= 25000(1 + 10/100)3
= 25000(1 + 1/10)3
= 25000 × (11/10)3
= 25000 × 11/10 × 11/10 × 11/10
= 33275
CI = 33275 – 25000 = 8275