Correct Answer - Option 3 : Rs. 11248.64

**Given****∶**

Invested money = Rs.10,000

Time = 3 years

Rate = 5% p.a. compounded yearly

P.F is deducted at the rate of 20% each year.

**Formula** **Used**∶

C.I. = P [ (1 + R/100)^{n} - 1]

**Calculation****∶**

For 2^{nd }year, P = 10,400, R = 5%, n = 1

C.I. = 10,000 [(1 + 5/100) - 1] = 10000 × 1/20 = Rs. 500

Amount at the end of 2nd year = 10400 × 520 - 20% of 520

⇒ 10920 - 104

⇒ Rs. 10,816

for 3rd year, P = 10,816, R = 5%, n = 1

C.I. = 10,816 [(1 + 5/100) - 1]

⇒ 10816 × 1/20

⇒ Rs. 540.80

Amount at the end of 3rd year = 10816 + 540.80 - 20% of 540.80

⇒ 11356.80 - 108.16

⇒ Rs.11,248.64

**Thus, the amount at the 3rd year is Rs.11,248.64.**