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Question : Basanthi deposited INR 50,000 in a co-operative bank which is giving compound interest at the rate of 10% per annum. What will be her interest in the 3rd year?

Option 1: INR 66,550

Option 2: INR 6,050

Option 3: INR 5,050

Option 4: INR 10,050


Team Careers360 16th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: INR 6,050


Solution : Principal sum = INR 50000
Rate = 10% per annum compounded annually
Interest in first year = 10% of 50000 = 5000
Amount after one year = 55000
Interest in second year = 10% of 55000 = 5500
Amount after two years = 55000 + 5500 = 60500
Interest in third year = 10% of 60500 = 6050
Hence, the correct answer is INR 6050.

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