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      Question

      Vishal invests a sum of money at an annual compound

      interest rate of 6%. Over a period of 5 years, the interest accumulated amounts to Rs. 900. If he increases his initial investment by Rs. 500, what will be the total amount after 5 years at the same interest rate?
      A 4581 Correct Answer Incorrect Answer
      B 4430 Correct Answer Incorrect Answer
      C 5080 Correct Answer Incorrect Answer
      D 4160 Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      ATQ;
      Let 6% = 900

      Principal = 3000

      Interest on 500 = 6 ร— 5 = 30

      Total = (900 + 30) + 3000 + 500 = 4430

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