Question 120

What will be the amount on Rs 12500 at the rate of 20% per annum compounded yearly for 3 years?

Solution

Principal sum = Rs. 12,500

Rate of interest = 20% and time period = 3 years

Amount after compound interest = $$P(1+\frac{r}{100})^T$$

= $$12500(1+\frac{20}{100})^3$$

= $$12500\times(\frac{6}{5})^3$$

= $$100\times216=Rs.$$ $$21,600$$

=> Ans - (D)

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