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Mathematics

The compound interest on ₹ 8,640 for 3 years at 8% p.a. is:

  1. ₹ 2,345

  2. ₹ 3,245

  3. ₹ 3,425

  4. ₹ 3,452

Compound Interest

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Answer

Given,

P = ₹ 8,640

n = 3 year

r = 8%

By formula,

A=P(1+r100)nA = P\Big(1 + \dfrac{r}{100}\Big)^n

Substituting values we get :

⇒A=8640×(1+8100)3⇒A=8640×(100+8100)3⇒A=8640×(108100)3⇒A=8640×(2725)3⇒A=8640×1968315625⇒A=₹10,883.9\Rightarrow A = 8640 \times \Big(1 + \dfrac{8}{100}\Big)^3 \\[1em] \Rightarrow A = 8640 \times \Big(\dfrac{100 + 8}{100}\Big)^3 \\[1em] \Rightarrow A = 8640 \times \Big(\dfrac{108}{100}\Big)^3 \\[1em] \Rightarrow A = 8640 \times \Big(\dfrac{27}{25}\Big)^3 \\[1em] \Rightarrow A = 8640 \times \dfrac{19683}{15625} \\[1em] \Rightarrow A = ₹ 10,883.9

Compound interest = Final amount - Initial principal

= ₹ 10,883.9 - ₹ 8,640

= ₹ 2,243.9

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