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    What is the compound interest on ₹3,600 at 10% per annum for 3 years, when the interest is compounded annually?
    Question

    What is the compound interest on ₹3,600 at 10% per annum for 3 years, when the interest is compounded annually?

    A.

    ₹ 1,100

    B.

    ₹ 1,190

    C.

    ₹ 1,191.60

    D.

    ₹ 1,192.50

    Correct option is C

    Given:

    • Principal (P) = ₹3,600
    • Rate (r) = 10% per annum
    • Time (t) = 3 years

    Formula for Compound Interest:

    A=P(1+r100)tA = P \left(1 + \frac{r}{100}\right)^t

    A=3600(1+10100)3=3600×(1.1)3A = 3600 \left(1 + \frac{10}{100}\right)^3 = 3600 \times (1.1)^3


    A=3600×1.331=4791.60A = 3600 \times 1.331 = 4791.60


    Compound Interest=AP=4797.603600=1191.60\text{Compound Interest} = A - P = 4797.60 - 3600 = 1191.60


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