How much it will become at the end of 3 years?

Manju saves 200 at the end of each year and lends the money at 5% compound interest. How much it will become at the end of 3 years?

  1. 655.02
  2. 662.0
  3. 660.02
  4. None of these
Anurag Mishra Professor Asked on 31st January 2016 in Maths.
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1 Answer(s)

Answer: (2) 662.02

Solution:-
Amount end of first year = 200 + 200 x 5/100
= 200 + 10
= Rs. 210

Amount end of second year = (210 + 200) + 410 x 5/100
= 410 + 20.5
= Rs. 430.5

Amount end of third years = (430.5 + 200) + 630.5 x 5/100
= 630.5 + 31.52
= Rs. 662.02

Hence, the correct answer is option (2) 662.02.

Anurag Mishra Professor Answered on 31st January 2016.
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