Question 30
EasyOriginal questionA deposit at 10% per annum, compounded annually, amounts to ₹24,200 after 2 years. What will it amount to after 3 years?
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
Each year the balance is multiplied by 1.1.
Amount after 3 years = ₹24,200 × 1.1 = ₹26,620.
Worth noting
Adding ₹2,000 (the first year's interest) or ₹2,200 (the second year's) gives the wrong totals. The third year's interest is 10% of the current ₹24,200.
- Concept
- Amount in the next year at compound interest
- Typical timeTypical
- 40 s
- Your timeYours
- —
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