# What amount will be paid after 3 years?

25,000 is borrowed at compound interest at the rate of 3% for the first year, 4% for the second year and 5% for the third year. The amount to be paid after 3 years is :

- Rs. 28117
- Rs. 28119
- Rs. 28121
- Rs. 28132

**Answer: (2) Rs. 28119**

**Solution:-**

Principal = Rs. 25, 000, rate = 3%

Then, the principal of second year = 25, 000(1 + 3/100)

= 25, 000 (103/100)

= 25, 000 x 103/100

= 250 x 103

= Rs. 25, 750

Rate = 4%,

Then, the principal for third years = 25, 750 (1 + 4/100)

= 25, 750 (1 + 1/25)

= 25, 750 x 26/25

= 1030 x 26

= Rs. 26, 780

Rate = 5%

So, the amount to be paid after 3 years = 26, 780 (1 + 5/100)

= 26, 780 (1 + 1/20)

= 26, 780 (21/20)

= 26, 780 x 21/20

= Rs.28119

Then, the amount to be paid after 3 years is Rs. 28119.

Hence, the correct answer is option (2) Rs. 28119.