Home » Aptitude » Compound Interest

What will Rs.1500 amount to in three years if it is invested in 20% p.a. compound interest, interest being compounded annually?

Correct Answer: Rs.2592

Explanation:


The usual way to find the compound interest is given by the formula A = .p(1+r/100)^n


In this formula,


A is the amount at the end of the period of investment


P is the principal that is invested


r is the rate of interest in % p.a


And n is the number of years for which the principal has been invested.


In this case, it would turn out to be A =1500(1+20/100)^3


= 2592.


← Previous Question Next Question→

More Questions from Compound Interest

Discussion & Comments

No comments yet. Be the first to comment!
Join Discussion