If the interest is compounded yearly, find the compound interest on the sum ₹30,000 at the rate of 4% per annum for 3 years.

Correct option is C

Given:

Principal (P) = ₹30,000

Rate (R) = 4% per annum

Time (T) = 3 years

Compounded yearly

Formula Used:

​$$A = P \left(1 + \frac{R}{100}\right)^T \quad \text{and} \quad CI = A - P$$​​

Solution:

A = $$30000 \left(1 + \frac{4}{100}\right)^3$$​​

= $$30000 \left(1.04\right)^3$$​​

=  $$30000 \times 1.124864$$​​

= ₹3745.92

CI = 33745.92 - 30000 

= ₹3745.92

Thus, the correct option is (c) ₹3745.92

Alternate Method:

Formula:

R = 3r + $$\frac{3r^2}{100}$$ + $$\frac{r^3}{10000}$$   

Solution:

=  12 + $$\frac{48}{100}$$ + $$\frac{64}{10000}$$​​

= 12 + 0.48 + 0.0064

= 12 .4864 %

So, CI = $$3000 \times \frac{12.4864}{100}$$

CI = Rs. 3745.92