If the rate of interest be 4% per annum for first year, 5% per annum for second year and 6% per annum for… · ABC26GN4146

Subject: General Aptitude · Chapter: Compound Interest · Exam: C.P.O. 2006

If the rate of interest be 4\% per annum for first year, 5\% per annum for second year and 6\% per annum for third year, then the compound interest of ₹ 10000 for 3 years will be
(a)₹ 1575.20
(b)₹ 1600
(c)₹ 1625.80
(d)₹ 2000
Answer
Answer (as printed): A
Explanation
$$\begin{aligned} & \text { Amount }=₹ 10000\left[\left(1+\frac{4}{100}\right)\left(1+\frac{5}{100}\right)\left(1+\frac{6}{100}\right)\right] \\ & \quad=₹\left(10000 \times \frac{26}{25} \times \frac{21}{20} \times \frac{53}{50}\right)=₹\left(\frac{57876}{5}\right)=₹ 11575.20 \\ & \therefore \text { C.I. }=₹(11575.20-10000)=₹ 1575.20 . \end{aligned}$$

Explanation as extracted from the printed page; notation may be imperfect.

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