Question

How much is the compound interest on Rs. 2000 at 20% interest in 3 years?
1. Rs. 1456
2. Rs. 3000
3. Rs. 1556
4. Rs. 556

Answer 1

Correct Answer - Option 1 : Rs. 1456

Given:

Principal = Rs. 2000

Rate = 20%

Time = 3 years

Formula Used:

Compound Interest = P(1 +\( {R \ \over 100}\))T - P

Calculation:

C.I = P (1 + \( {20 \ \over 100}\))T - P

⇒ 2000 × (\( {6 \ \over 5}\))3 - 2000

⇒ 3456 - 2000

⇒ Rs. 1456

∴ The required compound interest is Rs. 1456