Home › IBPS Clerk › Quantitative Aptitude › Simple & Compound Interest › Rs 100 is invested at 10 per cent compounded ann…
Rs 100 is invested at 10 per cent compounded annually. What is the amount at the end of 3 years?
ARs 130.00
BRs 133.10
CRs 131.00
DRs 134.10
Answer & Solution
Correct answer: B. Rs 133.10
1. End of year 1 = 100 + 10 = Rs 110.
2. End of year 2 = 110 + 11 = Rs 121.
3. End of year 3 = 121 + 12.10 = Rs 133.10.
4. Compound interest earned = 133.10 - 100 = Rs 33.10.
5. Simple interest over the same 3 years gives only Rs 30, so the answer Rs 130 is the trap.
_Source: NCERT Class 8 Maths Ch7 'Comparing Quantities', comparison chart in section 7.4_
Related questions
Another worked compound example used a principal of:A 17 year worked example compounded how many times a year?Cody's account compounded quarterly at what annual rate?Compound interest grows an account faster because more money:A larger worked loan had a payoff amount of:One worked simple interest loan had a payoff of:In another worked loan, the partial payment fell after how many days?The interest portion of that partial payment came to: