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
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.
Related Questions
Know More about
Staff Selection Commission Multi Tasking ...
Application | Cutoff | Selection Process | Preparation Tips | Eligibility | Exam Pattern | Admit Card
Get Updates Brochure
Your Staff Selection Commission Multi Tasking Staff Exam brochure has been successfully mailed to your registered email id “”.
