What will be the amount on 12500 at the rate of 20% per annum compounded yearly for 3 years?

Answer : Option A

Explanation :

$A=P\left(1+\frac{R}{100}\right)^{T}$ $=12500\left(1+\frac{20}{100}\right)^{3}=12500\left(1+\frac{1}{5}\right)^{3}$ $=12500 \times \frac{6}{5} \times \frac{6}{5} \times \frac{6}{5}=$ Rs. 21600

According to the question,

125 unit → 12500

1 unit → 100

216 unit → 21600