What will be the compound interest on a sum of Rs. 40,000 after 3 years at the rate of 11 p.c.p.a.?

Rs. 14705.24

Rs. 14602.25

Rs. 14822.26

Rs. 14322.10

Explanation:

Amount after 3 years = P $\left(1 + \dfrac{R}{100}\right)^T$ = $40000\left(1 + \dfrac{11}{100}\right)^3$ =$ 40000\left(\dfrac{111}{100}\right)^3$

= $\dfrac{40000 \times 111 \times 111 \times 111}{100 \times 100 \times 100}$ = $\dfrac{4\times 111 \times 111 \times 111}{ 100} $= 54705.24

Compound Interest = 54705.24 - 40000 = Rs. 14705.24