Compute the accumulated compound interest on an investment of Rs. 25,000 following a 3-year duration at a 12% annual rate.
Show answer Hide answer
Answer: C. Rs. 10123.20
Explanation
Compound interest calculations use the principal multiplied by one plus the rate raised to time. The annual interest rate of twelve percent is converted to a decimal for equation processing. Subtracting the original principal from the final accumulated amount gives compound interest. Compound interest earns returns on both the initial principal and accumulated interest over time. Exponential growth functions govern investments compounded annually across multi-year periods. Financial tables or electronic calculators resolve complex exponential interest formulas accurately.
Long-term savings plans and investment portfolios grow exponentially through compound interest. Banking products such as mortgages and certificates of deposit rely heavily on compounding. Understanding compound growth is essential for retirement planning and wealth accumulation. Option A underestimates the accumulated compound interest over the three-year investment duration. Option B represents only the total amount without subtracting the initial principal investment. Option D overestimates the interest earnings by miscalculating the exponential growth factor.
- Subject
- Mathematics
- Category
- Mathematics
- Topic
- —
- Difficulty
- medium
Related questions
Q1. 16 represents what percentage of 125?
Show answer Hide answer
Answer: D. None of these
Dividing sixteen by one-hundred twenty-five and multiplying by one hundred yields twelve point eight percent. Converting twelve point eight percent into a fraction gives twelve and four fifths percent. Because twelve and...
Q2. Calculate the aggregate sum of the initial 70 odd integers.
Show answer Hide answer
Answer: A. 4900
The sum of the first n positive odd integers is mathematically proven to be equal to n squared. The problem asks for the aggregate sum of the initial seventy odd integers in the number sequence. Squaring the value sevent...
Q3. In how many ways can a committee of 3 men and 2 women be chosen such that one specific man and one specific woman are invariably included?
Show answer Hide answer
Answer: C. 30
Involving one specific man and one specific woman permanently reduces the remaining selection pool requirements. Selecting two additional men from the remaining available pool requires evaluating binomial coefficient com...
Q4. What is the surface area of an equilateral triangle featuring side lengths of 16 cm?
Show answer Hide answer
Answer: D. 64√3 cm2
The formula for the area of an equilateral triangle requires multiplying root three over four by the side squared. Squaring sixteen gives two hundred fifty six square centimeters for the intermediate calculation. Multipl...
Q5. Water streams into a 200 x 150m reservoir via a rectangular conduit measuring 1.5 x 1.25m at a 20kmph velocity. In what duration will the water level rise by 2 meters?
Show answer Hide answer
Answer: D. 96min
The volume of water needed to raise the reservoir level by two meters is calculated using its surface dimensions. Equating this required reservoir volume to the volumetric flow rate through the rectangular conduit determ...
Q6. Two railway convoys measuring 140 meters and 120 meters progress in the identical direction at 40 kmph and 60 kmph respectively. How long will the faster convoy take to overtake the slower one?
Show answer Hide answer
Answer: C. 0.78 minutes
The relative speed of the faster convoy overtaking the slower one equals the difference of their speeds. Subtracting forty kilometers per hour from sixty kilometers per hour yields a relative speed of twenty kilometers p...