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

  1. Rs. 2050
  2. Rs. 2775
  3. Rs. 3050
  4. Rs. 3180
Monis Rasool Professor Asked on 6th August 2015 in Maths.
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  • 1 Answer(s)

    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.

    Anurag Mishra Professor Answered on 6th August 2015.
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