What will be the compound interest on a sum of Rs. 25,000 after 3 years at the rate of 12 p.c.p.a.?

A. Rs. 9000.30

B. Rs. 9720

C. Rs. 10123.20

D. Rs. 10483.20

E. None of these

Answer: Option C

Solution(By Examveda Team)

$$\eqalign{ & {\text{Amount}} = Rs.\,\left[ {25000 \times {{\left( {1 + \frac{{12}}{{100}}} \right)}^3}} \right] \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\,\left( {25000 \times \frac{{28}}{{25}} \times \frac{{28}}{{25}} \times \frac{{28}}{{25}}} \right) \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\,35123.20 \cr & \therefore {\text{C}}{\text{.I}}{\text{.}} = Rs.\left( {35123.20 - 25000} \right) \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\,10123.20 \cr} $$