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Compound interest with variable rates

CMAT 2020 · Quantitative Techniques & Data Interpretation · Easy · Simple & Compound Interest

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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.

  1. A.

    28,117/-

  2. B.

    28,118/-

  3. C.

    28,120/-

  4. D.

    28,119/-

Answer

D

Explanation

Amount=25000×(1+3100)×(1+4100)×(1+5100)\text{Amount} = 25000 \times \left(1 + \frac{3}{100}\right) \times \left(1 + \frac{4}{100}\right) \times \left(1 + \frac{5}{100}\right) =25000×103100×104100×105100=28119/−= 25000 \times \frac{103}{100} \times \frac{104}{100} \times \frac{105}{100} = 28119/-

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