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If the amount on a certain principal in 3 years at 12% rate of interest compounded annually is Rs. 12,000, what will be the amount (in Rs.) after the 4th year?
  • a)
    14330
  • b)
    15440
  • c)
    13440
  • d)
    14550
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
If the amount on a certain principal in 3 years at 12% rate of interes...
The amount after 4th year is
⇒ 12000 × (1 + 0.12) = 13440
∴ Amount after 4th year is Rs. 13440.
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Most Upvoted Answer
If the amount on a certain principal in 3 years at 12% rate of interes...
Given:
Principal (P) = unknown
Time (t) = 3 years
Rate of interest (R) = 12%
Amount after 3 years (A) = Rs. 12,000

To find:
Amount after 4th year

Formula used:
Amount (A) = P(1 + R/100)^t

Calculation:
Using the above formula, we can find the principal amount (P) as follows:

12000 = P(1 + 12/100)^3
12000 = P(1.12)^3
12000 = P(1.4049)
P = 12000/1.4049
P = 8536.58 (approx.)

Now, using the same formula, we can find the amount after the 4th year:

A = P(1 + R/100)^t
A = 8536.58(1 + 12/100)^4
A = 13440 (approx.)

Therefore, the amount after the 4th year is Rs. 13,440.

Answer: Option C.
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Question Description
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