By Mansi Yadav

Verified by Ajay Kumar

Find the amount if ₹6,400 is invested at 5% compound interest for 3 years.

  1. ₹7208.80

  2. ₹7408.80

  3. ₹7308.80

  4. ₹7008.80

Answer: B

Solution

Solution: \(A=P(1+\frac{r}{100})^n\). Thus, \(A=6400(1+\frac{5}{100})^3=6400(1.05)^3\) = ₹7408.80. Trick: Apply the 5% increase successively for all three years; compound interest is calculated on the updated amount each year.

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