What will be the compound interest on a sum of ₹ 50000

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What will be the compound interest on a sum of ₹ 50000 after 3 yr at the rate of 12% pa?

1. ₹ 80000
2. ₹ 70246.40
3. ₹ 20246.40
4. ₹ 70000

Correct Option: C

Given, P = ₹ 50000, R = 12% and n = 3 Yr
According to the formula,
Amount = P (1 + R/100 )ⁿ
= 50000 (1 + 12/100 )³
= 50000 x (28/25) x (28/25) x (28/25)
= 16 x (28 x 28 x 28)/ 5 = 351232/5
= ₹ 70246.40
∴ CI = 702446.40 - 50000 = ₹ 20246.40