Question

    A person borrows ₹80,000 at a rate of 10% per annum

    compound interest. What is the amount after 3 years?
    A ₹100,650 Correct Answer Incorrect Answer
    B ₹106,480 Correct Answer Incorrect Answer
    C ₹112,140 Correct Answer Incorrect Answer
    D ₹119,200 Correct Answer Incorrect Answer

    Solution

    The formula for compound interest is: Amount = P(1 + R/100)^T, Where P is the principal, R is the rate of interest, and T is the time in years. Amount = 80,000(1 + 10/100)^3 = 80,000(1.1)^3. Amount = 80,000 × 1.331 = ₹106,480 The amount after 3 years is ₹106,480

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