Question

Q. Babu lent out Rs 2000 from his saving every year at 5% compound interest. What will be the total amount after 3 years?

• A. 5753.35
• B. 6002.52
• C. 6303.65
• D. 6620.25
• E. None of these

Answer 1

The correct option is D 6620.25

Total amount after 3 year $=2000{(1+\frac{5}{100})}^3+2000{(1+\frac{5}{100})}^2+2000{(1+\frac{5}{100})}^{1}2000((\frac{21}{20}\times \frac{21}{20}\times \frac{21}{20})+(\frac{21}{20}\times \frac{21}{20})+\left(\frac{21}{20}\right))=2000\times \frac{21}{20}(\frac{21}{20}\times \frac{21}{20}+\frac{21}{20}+1)=6620.25$