What will be the compound interest on a sum of Rs. 40,000 after 3 years at the rate of 11 p.c.p.a.?a)Rs. 14705.24b)Rs. 14602.25c)Rs. 14822.26d)Rs. 14322.10Correct answer is option 'A'. Can you explain this answer?

Question

Answer

Amount after 3 years = P(1 + R/100)^T
=> 40000(1 + 11/100)³
=> 40000(111/100)³
=> 40000[(111*111*111)/(100*100*100)]
=> (4*111*111*111)/100
=> 54705.24
Compound Interest = 54705.24 - 40000
= Rs. 14705.24

Answer

A=P(1+R/100)^3
so
= 40000(1+11/100)^3
= 40000(111/100)^3

= 40000(1.3676)
= 54705.24 which is the amount
now CI= A - P
= 54705.24- 40000
= 14705.24 (A)

Answer

Given:
Principal amount (P) = Rs. 40,000
Rate of interest (R) = 11% per annum
Time (T) = 3 years

Formula:
Compound Interest (CI) = P * (1 + R/100)^T - P

Calculation:
Substituting the given values in the formula, we get:
CI = 40,000 * (1 + 11/100)^3 - 40,000

Simplifying the expression:
CI = 40,000 * (1 + 0.11)^3 - 40,000
CI = 40,000 * (1.11)^3 - 40,000
CI = 40,000 * 1.36631 - 40,000
CI = 54,652.4 - 40,000
CI = 14,652.4

Hence, the compound interest on a sum of Rs. 40,000 after 3 years at the rate of 11% per annum is Rs. 14,652.4.

Therefore, option A, Rs. 14,705.24, is the correct answer.

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