Find the compound interest on an amount of Rs. 24,000 after three years, when compounded annually at the rate of 15% per annum.

Correct option is B

Given:

Principal (P) = ₹24,000

Rate (R) = 15% per annum

Time (T) = 3 years

Compounded annually

Formula Used:

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

CI = A − P

Solution:

A = $$24000 \left(1 + \frac{15}{100} \right)^3$$​​

=$$24000 \times \left(\frac{115}{100}\right)^3$$​​

​$$= 24000 \times \frac{23}{20}\times \frac{23}{20}\times \frac{23}{20}$$​​

​$$= 3 \times 12167$$​​

= 36501

Now,

Compound Interest = 36501 - 24000 = Rs. 12501