1.  What will be compound interest on a sum of ₹ 25000 after 3 years at the rate of 12 p. c. p. a ?
A. ₹ 9000.30
B. ₹ 9720
C. ₹ 10123.20
D. ₹ 10483.20
E. None of these

Answer: Option C

Explanation:

Amount:

= ₹ 25000 x 1 + 12 3
100
= ₹ 25000 x 28 x 28 x 28
25 25 25
= ₹ 35123.20

∴ C.I. = ₹ (35123.20 - 25000) = ₹ 10123.20