What is the compound interest on Rs. 8,000 at 10% per annum for 3 years, compounded annually?
Correct answer B. Rs. 2,648
Explanation
A = 8000 × (1.1)³ = 8000 × 1.331 = 10,648. CI = 10648 − 8000 = Rs. 2,648. Simple interest would be only Rs. 2,400, so compounding adds Rs. 248.
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