Correct Answer - Option 4 : Rs. 1261
Given:
Principal = Rs. 8000
Rate = 5%
Time = 3 years.
Formula used:
C.I = P[(1 + R/100)N – 1]
Calculation:
C.I = P[(1 + R/100)N – 1]
⇒ C.I = 8000[(1 + 5/100)3 – 1]
⇒ C.I = 8000 × [(21/20)3 – 1]
⇒ C.I = 8000 × [(9261 – 8000)/8000]
⇒ C.I = (8000 × 1261/8000)
⇒ C.I = Rs. 1261
∴ The compound interest is Rs. 1261