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 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?
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Use the compound interest formula and compute powers accurately for final amount.
Updated On: Mar 24, 2026
- Rs. 11,576.25
- Rs. 11,500
- Rs. 12,000
Rs. 12,100
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The Correct Option is A
Solution and Explanation
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.
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