CMAT 2020 Solved Question Paper

Question : 18 of 100

Marks: +1, -0

₹ 25,000 is borrowed at compound interest at the rate of 3% for first year, 4% for 2nd year and 5% for 3rd year. Find the amount to be paid after 3 years.

₹ 28,119
₹ 28,120
₹ 28,118
₹ 28,117

Validate

Solution:

When Rates are different for different years, say

{R}_{1} \%\ ,

{R}_{2} \%, \ {R}_{3} \%

for

1 {\st}, 2 {\nd}

and

3 {\rd}

year respectively.
Then, Amount

=P (1+ {R_{1}}/{100} ) (1+ {R_{2}}/{100} ) (1+ {R_{3}}/{100} )

=25000 (1+ {3}/{100} ) (1+ {4}/{100} ) (1+ {5}/{100} )

=25000 ×{103}/{100} ×{104}/{100} ×{105}/{100}

= {5 × 103 × 52 × 105}/{100}

= {5 ×21 ×103 × 13}/{5}

=21× 103× 13

=1339 ×21=\₹ 28,119.

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