A man invests Rs 4000 for 3 years at compound interest. After one yea…

Question

A man invests Rs 4000 for 3 years at compound interest. After one year the money amounts to Rs. 4320. What will be the amount (to the nearest rupee) due at the end of 3 years ?

Accepted Answer

Option B. Rs. 5039. Answer & Solution Answer: Option B Solution: & Le the rate be R \% p .a . & Then, & 4000 ( 1 + R 100 ) = 4320 & 1 + R 100 = 43204000 = 108100 & R 100 = 8100 & R = 8 & Amount after 3 yeras & = Rs . [ 4000 + ( 1 + 8100 )^3 ] & = Rs . ( 4000 × 2725 × 2725 × 2725 ) & = Rs . ( 629856…