The amount on a certain sum at 15% rate of interest compounded annually in 3 years is Rs. 12000. What will be the amount after 4th year?
Answer & explanation
Correct answer: option 3
In C.I. the amount after 3 years will become the principal for 4th year.
Therefore,
A = P (1+ \(\frac{R}{100}\))1
A = 12000(1 + \(\frac{15}{100}\)) = 12000 × \(\frac{115}{100}\)
= 13800