Question

How much will ₹50,000 amount in 3 years compounded yearly, if the rates for the successive years are 6%, 8% and 10% respectively?

• A. ₹69,953
• B. ₹66,490
• C. ₹64,886
• D. ₹62,964

Answer 1

The correct option is D ₹62,964

It is given that a sum of ₹50,000 is compounded yearly, for a span of 3 years, and the rates for the successive years are 6%, 8% and 10% respectively.
Using formula,
$A=P$(1 + <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> $\frac{a}{100}$) (1 + <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> $\frac{b}{100}$) (1 + <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> $\frac{c}{100}$) , where a, b, and c are the rates.

$A$ = $₹50,000$ (1 + $\frac{6}{100}$) (1 + $\frac{8}{100}$) (1 + $\frac{10}{100}$)

$A$ = $₹50,000$ ( $\frac{106}{100}$) ($\frac{108}{100}$) ($\frac{110}{100}$)

$A$ = $₹62,964$