Question 70

The compound interest on Rs. 64,000 for 3 years, compounded annually at 7.5% p.a. is

Solution

Principal (P) = Rs. 64,000

Time (t) = 3 years and rate of interest under compound interest (r) = 7.5%

=> $$C.I. = P[(1+\frac{r}{100})^t-1]$$

= $$64000[(1+\frac{7.5}{100})^3-1]$$

= $$64000[(1+\frac{15}{200})^3-1]$$

= $$64000[(\frac{43}{40})^3-1]$$

= $$64000 \times \frac{(43)^3-(40)^3}{64000}$$

= $$79507-64000=Rs.$$ $$15,507$$

=> Ans - (C)

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