Question : If the amount on a certain principal in 3 years at a 12% rate of interest compounded annually is Rs. 12,000, what will be the amount (in Rs.) after the 4th year?
Option 1: 14,330
Option 2: 15,440
Option 3: 13,440
Option 4: 14,550
Latest: SSC CGL preparation tips to crack the exam
Don't Miss: SSC CGL complete guide
Correct Answer: 13,440
Solution :
We have,
$A = 12000, r = 12\%, n = 1 $ (compounded annually) and $t = 3$ years.
$A = P \left(1+\frac{r}{100}\right)^{t}$
Substituting the given values into the formula,
$⇒12000 = P (1+\frac{12}{100})^{1×3}$
$⇒12000 = P (1.12)^{3}$---(i)
For $t = 4$ year
$⇒ A = P(1 + \frac{12}{100})^{4}$
$⇒ A = P (1.12 )^{4}$---(ii)
Divide equation (ii) by (i), we get
$⇒A = 12000×1.12 = 13440$
Hence, the correct answer is Rs. $13440$.
Related Questions
Know More about
Staff Selection Commission Combined Grad ...
Answer Key | Eligibility | Application | Selection Process | Preparation Tips | Result | Admit Card
Get Updates Brochure
Your Staff Selection Commission Combined Graduate Level Exam brochure has been successfully mailed to your registered email id “”.
