An owner increases the rent of his house by 5% at the end of each year

An owner increases the rent of his house by 5% at the end of each year. If the current rent is Rs. 3000 per month, what will be the rent, in rupees, after 2 years ?

  1. 3300
  2. 3150
  3. 3307.50
  4. 3207.50
Anurag Mishra Professor Asked on 19th April 2016 in Maths.
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1 Answer(s)

Answer: (3) Rs.3,307.50

Solution:-
The current rent of a house = Rs.3,000
An owner increases the rent of his house by 5%.
Then, the rent of house after one year = 3,000 + 3,000 x 5/100
= 3,000 + 150
= 3,150
So, Rent after two years = 3,150 + 3,150 x 5/100
= 3,150 + 157.5
= 3,307.50

Then, after two years rent will be Rs.3,307.50.

Hence, the correct answer is option (3) Rs.3,307.50.

Anurag Mishra Professor Answered on 20th April 2016.
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