₹ 7500  is borrowed at compound interest at the rate of 2% per annum for the first year and 4% per annum for the second year and 5% per annum for the third year. The amount to be paid after 3 years is:

(a) ₹ 8353.80 (b) ₹ 8520.20 (c) ₹ 9261 (d) ₹ 8432.

Asked by gunjanagarwal749 | 30th Aug, 2020, 03:07: PM

Expert Answer:

Here P = Rs. 7500, R = 2%, N = 1 year
A=P(1+R/100)N = 7500(1+2/100) = 7500 x 51/50 = 51 x 150 = Rs. 7650
Now, P = Rs. 7650, R = 4%, N = 1 year
A=P(1+R/100)N = 7650(1+4/100) = 7650 x 26/25 = 306 x 26 = Rs. 7956
Now, P = Rs. 7650, R = 5%, N = 1 year
A=P(1+R/100)N = 7956(1+5/100) = 7956 x 21/20 = 397.8 x 21 = Rs. 8353.8
Hence, the amount to be paid after 3 years is Rs. 8353.80.

Answered by Renu Varma | 31st Aug, 2020, 12:55: PM