What would be the Compound Interest on Rs.3200 at 25 % per Annum for 3 Years?

Answer: (3) Rs.3050

Explanation:-
Given –
Principal = Rs.3200 , Rate = 25 %  & Time = 3 years

Formula-
Compound Interest = P [(1 + R/100)^t – 1]
Where, P = principal, R = rate, t = time.

Then,
Compound Interest = 3200 [(1 + 25/100)³ – 1]
= 3200[(1 + ¼)³ – 1]
= 3200 (5/4)³ – 3200
= 3200 x 5 x 5 x 5/ 4 x 4 x 4 – 3200
= 200 x 5 x 5 x 5/4 – 3200
= 50 x 5 x 5 x 5 – 3200
= 50 x 125 – 3200
= 6250 – 3200
= Rs.3050
Then, the simple Interest is Rs.3050.

Hence, the answer is (3) Rs.3050.