Question

Shyam wants to deposit Rs. 5000 for three years. The compound interest rate received for these years would be 3%, 2% and 1% respectively then find the amount he will received at the end.

1. Rs 5200
2. Rs 5305.5
3. Rs 5000
4. Rs 5100
5. None of these

Answer 1

Correct Answer - Option 2 : Rs 5305.5

Given:

Principal amount(P) = 5000,

Rate of Interest : r₁ = 3%, r₂ = 2%, r₃ = 1%

Formula:

Amount = P ( 1+ r₁/100) (1+ r₂/100) (1+ r₃/100)

Calculation:

Amount = 5000 (1 + 3/100) (1 + 2/100) (1+ 1/100)

⇒5000(103/100) (102/100) (101/100)

⇒ 5,305.5

∴ Amount received is Rs. 5,305.5