New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Veeru invested Rs. 2800 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 Veeru at the end of 5 years.
    A Rs. 7656.25 Correct Answer Incorrect Answer
    B Rs. 7142.4 Correct Answer Incorrect Answer
    C Rs. 7948.8 Correct Answer Incorrect Answer
    D Rs. 9100.8 Correct Answer Incorrect Answer

    Solution

    Amount received by Veeru after 3 years of investment = (2800  × 20 × 3)/100 + 2800  = Rs. 4900 Therefore, sum invested by Veeru at compound interest = Rs. 4900 Amount received by Veeru at the end of 5 years = 4900(1 + 0.2)2 = Rs. 7656.25

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