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Simple & Compound Interest · Question 27 of 60

Question 27

EasyOriginal question

Lalremsiami invests ₹8,000 at 5% per annum, compounded annually. What amount will she receive after 3 years?

Options for question 27

Show the answer and explanation
CorrectNot quiteAnswer D

Correct answer: D

Explanation

  1. Amount = 8000×(2120)3=8000×926180008000 \times \left(\frac{21}{20}\right)^3 = 8000 \times \frac{9261}{8000}.

  2. Amount = ₹9,261.

Worth noting

₹9,200 is simple interest for 3 years; ₹8,820 stops after 2 years; ₹1,261 is the interest, not the amount. Writing 1.05 as 21/2021/20 makes the cube easy because 203=8,00020^3 = 8{,}000.

Concept
Amount at compound interest for 3 years
Typical time
45 s
Your time
—
The rule this testsCompound interest
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