Swara deposited ₹75,000 with a finance company for 3 years at an interest of 12% per annum, compounded annually. What is the compound interest that Swara gets after 3 years?

Given:

Principal (P) = ₹75,000

Rate (r) = 12% per annum

Time (t) = 3 years

Formula used:

Compound Interest (CI) = P(1 + )^t - P

Calculations:

CI = 75000(1 + )³ - 75000

⇒ CI = 75000(1 + 0.12)³ - 75000

⇒ CI = 75000(1.12)³ - 75000

⇒ CI = 75000(1.404928) - 75000

⇒ CI = 105369.60 - 75000

⇒ CI = 30369.60

∴ The correct answer is option (4).