What will be the amount payable on maturity on a principal of ₹12,000, invested for 3 years, at the rate of 10% per annum, compounded annually?
Answer & explanation
Correct answer: option 1
From the formula of Amount, we know,
Amount = P(1+$\frac{R}{100})^t$
= 12000 [ 1 + \(\frac{10}{100}\) ]³
= 12000 [ \(\frac{11}{10}\) × \(\frac{11}{10}\) × \(\frac{11}{10}\) ]
= 15972