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    Question

    Vishu invested Rs. 4000 at 20% p.a. simple interest for

    3 years. After 3 years, he invested the amount received by him at the 20% p.a. compound interest, compounded annually for another 2 years. Find the final amount received by Vishu at the end of 5 years.
    A Rs. 8064 Correct Answer Incorrect Answer
    B Rs. 7488 Correct Answer Incorrect Answer
    C Rs. 8640 Correct Answer Incorrect Answer
    D Rs. 9216 Correct Answer Incorrect Answer
    E Rs. 5990.4 Correct Answer Incorrect Answer

    Solution

    Amount received by Vishu after 3 years of investment = (4000 × 20 × 3)/100 + 4000 = Rs. 6400 Therefore, sum invested by Vishu at compound interest = Rs. 6400 Amount received by Vishu at the end of 5 years = 6400(1 + 0.2)2 = Rs. 9216

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