Question
A man deposited Rs. 10000 in a bank offering compound
interest of 10% p.a. compounded annually for first 2.5 years and after that simple interest of 26% p.a. for rest of the time. If at the end of two and half years, he withdrew Rs. 8705; then amount received by him at the end of 4 years will be:Solution
Amount left after two and half years = 1.05 × 1.10 × 1.10 × 10000 – 8705 = 12705 – 8705 = Rs. 4000 Amount received at the end of four years = 4000 + 4000 × 0.26 × 1.5 = Rs. 5560
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