A sum of Rs. 10,000 is invested at an annual interest rate of 8% compounded annually for 3 years. What will be the amount after 3 years? 

Correct option is A

Step 1: Formula for Compound Interest

The formula for compound interest is:

​$$A = P \left( 1 + \frac{r}{100} \right)^t$$​

Where:

A = Amount after t years

P = Principal (Rs. 10,000)

r = Annual interest rate (8%)

t = Time period (3 years)

Step 2: Apply the formula

Substituting the values into the formula:

​$$A = 10000 \left( 1 + \frac{8}{100} \right)^3$$​

$$A = 10000 \left( 1 + 0.08 \right)^3$$​

​$$A = 10000 \times (1.08)^3$$​​

Step 3: Calculate the result

First, calculate $$(1.08)^3$$​ :

​$$1.08^3 = 1.259712$$​​

Now, multiply by the principal:

​$$A = 10000 \times 1.259712 = 12,597.12$$​​

Final Answer:

The amount after 3 years will be Rs. 12,597.12