What will be the amount of ₹12,288 after 3 years when annual compound interest is given at 6.25% per annum rate of interest? 

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AAI Junior Assistant (Fire Service) Official Paper (Held On: 21 Apr, 2025 Shift 1)
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  1. ₹14,739
  2. ₹14,539
  3. ₹14,359
  4. ₹14,379

Answer (Detailed Solution Below)

Option 1 : ₹14,739
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Detailed Solution

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Given:

Principal (P) = ₹12,288

Time (t) = 3 years

Rate of interest (r) = 6.25% per annum

Formula used:

A = P(1 + r/100)t

Where, A = Amount

Calculations:

First, convert the rate of interest from percentage to fraction:

6.25% = 6.25/100 = 625/10000 = 1/16

Now, substitute the values into the compound interest formula:

A = 12288 × (1 + 1/16)3

⇒ A = 12288 × (17/16)3

⇒ A = 12288 × (17 × 17 × 17) / (16 × 16 × 16)

⇒ A = 12288 × (4913) / (4096)

Divide 12288 by 4096:

⇒ 12288 / 4096 = 3

So, A = 3 × 4913

⇒ A = 14739

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