What will be the amount payable on matur

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Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Compound Interest

Question:

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?

Options:

₹15,972

₹16,826

₹18,922

₹14,928

Correct Answer:

₹15,972

Explanation:

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