An owner increases the rent of his house by 5% at the end of each year
Answer: (3) Rs.3,307.50
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
So, Rent after two years = 3,150 + 3,150 x 5/100
= 3,150 + 157.5
Then, after two years rent will be Rs.3,307.50.
Hence, the correct answer is option (3) Rs.3,307.50.