Question

A sum of ₹14000 is lent at compound interest (interest is compounded annually) for 3 years. If the rate of interest is 10%, then what will be the compound interest?

• A. ₹4,634
• B. ₹4,645
• C. ₹4,364
• D. ₹4,643

Answer 1

Answer:

A. ₹4,634

Solution: Given: Principal amount, P = 14000 Number of years, N = 3 Rate of interest, R = 10% Formula used: Total amount, A = P × (1 + (R/100))N C.I = Total amount – Principal amount Calculation: Total amount, A = 14000 × (1 + (10/100))3 ⇒ A = 18634 ∴ C.I = 18634 – 14000 = 4634