8 Views

Question : A man saves Rs. 2000 at the end of each year and invests the money at 5% compound interest. At the end of 3 years, he will have:

Option 1: Rs. 4305

Option 2: Rs. 6305

Option 3: Rs. 4205

Option 4: Rs. 2205


Team Careers360 8th Jan, 2024
Answer (1)
Team Careers360 15th Jan, 2024

Correct Answer: Rs. 6305


Solution : We know, $\text{Total Amount}=\text{Principal}×(1+\frac{\text{Rate}}{100})^{\text{Time}}$
$=2000(1+\frac{5}{100})^2+2000(1+\frac{5}{100})$
$=2000(\frac{21}{20})^2+2000(\frac{21}{20})$
$=2000\times \frac{441}{400}+2100$
$=2205+2100$
$=4305$
Amount after two years = Rs. 4305
$\therefore$ At the end of 3 years, he will have = 4305 + 2000 = Rs. 6305
Hence, the correct answer is Rs. 6305.

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
GRE ® Registrations 2024
Apply
Apply for GRE® Test now & save 10% with ApplyShop Gift Card | World's most used Admission Test for Graduate & Professional Schools
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books