alleryRs.5000 lent at 10% per annum compounded annually for 3 years gives compound interest of
ARs.1700
BRs.1655
CRs.1500
DRs.1620
Answer & Solution
Correct answer: B. Rs.1655
1. A = 5000 * (1.10)^3.
2. (1.10)^3 = 1.331.
3. A = 5000 * 1.331 = 6655.
4. CI = A - P = 6655 - 5000 = 1655.
_Source: ICAI BoS Foundation Paper 3, Ch 4 'Math of Finance', p.8_
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