# 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 ?

- 3300
- 3150
- 3307.50
- 3207.50

**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.