Arithmetic Ability
Compound Interest

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Q.

What will Rs.1500 amount to in three years if it is invested in 20% p.a. compound interest, interest being compounded annually?

View Answer

Correct choice: A

Explanation:

The usual way to find the compound interest is given by the formula A = .p(1+r/100)^n In this formula, A is the amount at the end of the period of investment P is the principal that is invested r is the rate of interest in % p.a And n is the number of years for which the principal has been invested. In this case, it would turn out to be A =1500(1+20/100)^3 = 2592.
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