Compound interest for three years — Aptitude Question
Compound interest for three years: What is the amount on ₹10,000 at 10% per annum compound interest for 3 years? Answer and worked solution on CodeKairo.
- Topic: Simple & Compound Interest
- Section: Quantitative Aptitude
- Difficulty: Easy
- Time target: 50 seconds
Question
What is the amount on ₹10,000 at 10% per annum compound interest for 3 years?
Options
- ₹13,000
- ₹13,310
- ₹13,400
- ₹13,500
Show the answer and the worked solution
Correct answer: B. ₹13,310
Worked solution
- 1.1³ = 1.331.
- Amount = 10,000 × 1.331 = ₹13,310.
Answer: ₹13,310.
The idea
Worth memorising: 1.1² = 1.21, 1.1³ = 1.331, 1.2² = 1.44, 1.05² = 1.1025. They cover most exam questions instantly.
Shortcut. Add 10% three times: 10,000 → 11,000 → 12,100 → 13,310. Each step adds a copy of the last figure shifted one place.
Common trap. ₹13,000 — adding a flat 30%, which is the simple-interest amount; compounding adds interest on interest, ₹310 more.
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