Question Detail
A man saves Rs 200 at the end of each year and lends the money at 5% compound interest. How much will it become at the end of 3 years.
- Rs 662
- Rs 662.01
- Rs 662.02
- Rs 662.03
Answer: Option C
Explanation:
\begin{aligned}
[200(1+\frac{5}{100})^3 + 200(1+\frac{5}{100})^2+ \\ 200(1+\frac{5}{100})]
= [200(\frac{21}{20} \times \frac{21}{20} \times \frac{21}{20})\\
+ 200(\frac{21}{20}\times\frac{21}{20})+200(\frac{21}{20})] \\
= 662.02
\end{aligned}