ABC26GN4145 · Compound Interest
Subject: General Aptitude · Chapter: Compound Interest · Exam: · Marks: · Difficulty:
A man saves ₹ 200 at the end of each year and lends the money at 5\% compound interest. How much will it become at the end of 3 years ?
(a)₹ 565.25
(b)₹ 635
(c)₹ 662.02
(d)₹ 666.50
Answer
Explanation
Amount $$\begin{aligned} & =₹\left[200\left(1+\frac{5}{100}\right)^{3}+200\left(1+\frac{5}{100}\right)^{2}+200\left(1+\frac{5}{100}\right)\right] \\ & =₹\left[200 \times \frac{21}{20} \times \frac{21}{20} \times \frac{21}{20}+200 \times \frac{21}{20} \times \frac{21}{20}+200 \times \frac{21}{20}\right] \\ & =₹\left[200 \times \frac{21}{20}\left(\frac{21}{20} \times \frac{21}{20}+\frac{21}{20}+1\right)\right]=₹ 662.02 . \end{aligned}$$
Explanation as extracted from the printed page; notation may be imperfect.
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