Rajneesh deposited Rs. 3,00,000 in a bank for three years. What will be the final amount if the rate of interest is 8% compounded annually?

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SSC GD Constable (2022) Official Paper (Held On : 27 Jan 2023 Shift 3)
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  1. Rs. 3,77,913.60
  2. Rs. 3,70,000.00
  3. Rs. 3,57,931.60 
  4. Rs. 3,50,000.00

Answer (Detailed Solution Below)

Option 1 : Rs. 3,77,913.60
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Detailed Solution

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Given:

Principal (P) = Rs. 3,00,000

Time (t) = 3 years

Interest rate (r) = 8% per annum compounded annually

Formula Used:

Compound Interest (A) = P × (1 + r/100)t

Solution:

⇒ A = Rs. 3,00,000 × (1 + 8/100)3

⇒ A = Rs. 3,00,000 × (1.08)3

⇒ A = Rs. 3,00,000 × 1.259712

⇒ A = Rs. 3,77,913.60

Therefore, the final amount after 3 years will be Rs. 3,77,913.60.

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