Question

A Sum of money 45000 is invested at 7% p.a for first 3 years and 5.5% p.a for the next 2 years.. find the amount received at the end of 5 years ?

a) 59400 b) 56800 c) 54200 d) 57600​

Answer 1

Answer:

a.59400( simple interest calculation)

Explanation:

sum of money after first 3 years

$45000 + \frac{45000 \times 7 \times 3}{100} = rs \: 54450$

sum of money after end of 5 years

$54450 + \frac{45000 \times 5.5 \times 2}{100} = rs \: 59400$

Note:Bank uses compound interest to calculate the interest.