Question

    What will Rs. 40,000 amounts to in 3 years at the rate of 20% p.a., if interest is compounded yearly?

    A Rs. 58,564 Correct Answer Incorrect Answer
    B Rs.48,620 Correct Answer Incorrect Answer
    C Rs.69,120 Correct Answer Incorrect Answer
    D Rs. 57,600 Correct Answer Incorrect Answer

    Solution

    A =P(1+r/100) n =40000(1+20/100)3 =40000×6/5 ×6/5×6/5 =320×216 =69120.

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