New Register here for RBI, SEBI & NABARD strategy workshop! April 9 at 7 PM

    Question

    Virendra invested Rs. 2600 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 Virendra 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 Virendra after 3 years of investment = (2600 × 20 × 3)/100 + 2600 = Rs. 4160 Therefore, sum invested by Virendra at compound interest = Rs. 4160 Amount received by Virendra at the end of 5 years = 4160(1 + 0.2)2 = Rs. 5990.4

    Practice Next