Question

Meenal lends Rs. 25,000 at C.I. for 3 years. If the rate of interest for the first two years is 15% per year and for the third year it is 16%, calculate the sum Meenal will get at the end of the third year.

Answer 1

Given:

• Principlal amount = Rs. 25000
• Rate of interest for the first two years = 15%
• Rate of interest for the third year = 16%

To find:

• Sum of money that Meenal will get at the end of the third year.

Solution:

• Amount = P (1 + r/100)ᵗ

⇒ 25000 (1 + 15/100)² (1 + 16/100)

⇒ 25000 × 115/100 × 115/100 × 116/100

⇒ (115 × 23 × 29)/2

⇒ Rs. 38,352.50

Hence, the sum of money Meenal will get at the end of the third year is Rs. 38,352.5.

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