Question

A man invests Rs. 10,000 at 5% per annum compound interest for 3 years. What is the amount he receives at the end of 3 years?

• A. Rs. 11,576.25
• B. Rs. 11,500
• C. Rs. 12,000
• D. Rs. 12,100

Hint:

Use the compound interest formula and compute powers accurately for final amount.

Answer 1

The Correct Option is A

Amount = \( P \left(1 + \frac{r}{100}\right)^n \). 
\[ A = 10000 \left(1 + \frac{5}{100}\right)^3 = 10000 \times (1.05)^3 \] \[ (1.05)^3 = 1.05 \times 1.05 \times 1.05 = 1.157625 \] \[ A = 10000 \times 1.157625 = 11576.25 \] Thus, the answer is Rs. 11,576.25.