Tick (✓) the correct answer:

Question:

Tick (✓) the correct answer:

The compound interest on Rs 10000 at 10% per annum for 3 years, compounded annually, is

(a) Rs 1331

(b) Rs 3310

(c) Rs 3130

(d) Rs 13310

Solution:

(b) Rs. 3310

$A=P \times\left(1+\frac{R}{100}\right)^{n}$

$=$ Rs. $10000 \times\left(1+\frac{10}{100}\right)^{3}$

$=$ Rs. $10000 \times\left(\frac{110}{100}\right)^{3}$

$=$ Rs. $10000 \times\left(\frac{11}{10}\right)^{3}$

$=$ Rs. $10000 \times\left(\frac{11}{10}\right) \times\left(\frac{11}{10}\right) \times\left(\frac{11}{10}\right)$

$=$ Rs. $(10 \times 11 \times 11 \times 11)$

$=$ Rs. 13310

$\therefore$ Compound interest $=$ amount $-$ principal $=$ Rs $(13310-10000)=$ Rs 3310

 

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