Arithmeticmedium · Past Paper

A man invests Rs 5000 for 3 years at 10% per annum compound interest. Calculate the interest for the third year only.

ARs 500
BRs 550
CRs 605
DRs 665.5

✓ Correct Answer: CRs 605

Amount after 2 years = 5000(1.1)^2 = 6050. Interest for 3rd year = 10% of 6050 = 605.

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