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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.?
Options:
A .  Rs. 14705.24
B .  Rs. 14602.25
C .  Rs. 14822.26
D .  Rs. 14322.10
Answer: Option A

Answer : Option A

Explanation :

$MF#%\text{Amount after 3 years = }\text{P}\left(1 + \dfrac{\text{R}}{100}\right)^\text{T} = 40000\left(1 + \dfrac{11}{100}\right)^3 \\\\= 40000\left(\dfrac{111}{100}\right)^3 = \dfrac{40000 \times 111 \times 111 \times 111}{100 \times 100 \times 100} = \dfrac{4\times 111 \times 111 \times 111}{ 100} = 54705.24$MF#%
Compound Interest = 54705.24 - 40000 = Rs. 14705.24



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