Mathematics for FinancePYQ Nov 18Question 1283 of 512
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A man deposited Rs. 8,000\displaystyle \text{Rs. }8,000 in a bank for 3\displaystyle 3 years at 5%\displaystyle 5\% per annum compound interest, after 3\displaystyle 3 years he will get

Options

ARs. 8,800\displaystyle \text{Rs. }8,800
BRs. 9,261\displaystyle \text{Rs. }9,261
CRs. 9,200\displaystyle \text{Rs. }9,200
DRs. 9,000\displaystyle \text{Rs. }9,000
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Correct Answer

✅ Option b — Rs. 9,261\displaystyle \text{Rs. }9,261

All Options:

  • ARs. 8,800\displaystyle \text{Rs. }8,800
  • BRs. 9,261\displaystyle \text{Rs. }9,261
  • CRs. 9,200\displaystyle \text{Rs. }9,200
  • DRs. 9,000\displaystyle \text{Rs. }9,000

Detailed Solution & Explanation

**Derivation of Compound Interest Amount** Given: - Principal (P\displaystyle P) = Rs. 8,000\displaystyle \text{Rs. }8,000 - Rate of Interest (r\displaystyle r) = 5%\displaystyle 5\% per annum compounded annually - Time (t\displaystyle t) = 3\displaystyle 3 years **Step 1: Calculate the future value (A\displaystyle A)** A=P(1+r)tA = P(1 + r)^t A=8000(1+0.05)3A = 8000(1 + 0.05)^3 A=8000(1.05)3A = 8000(1.05)^3 **Step 2: Compute the power** (1.05)3=1.05×1.05×1.05=1.157625(1.05)^3 = 1.05 \times 1.05 \times 1.05 = 1.157625 **Step 3: Multiply by the Principal** A=8000×1.157625=Rs. 9,261A = 8000 \times 1.157625 = \text{Rs. }9,261 Hence, **Option B** is the correct answer.

Key Concepts to Understand

Compound Interest

Interest calculated on the initial principal, which also includes all of the accumulated interest of previous periods.

More Questions from Mathematics for Finance

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A certain sum of money was put at S.I. for 2.5\displaystyle 2.5 years at a certain rate of S.I. p.a. Had it been put at 4%\displaystyle 4\% higher rate, it would have fetched 500\displaystyle 500 more. Find the sum of money.

Rs.1,25,000\displaystyle 1,25,000 is borrowed at compound interest at the rate of 2%\displaystyle 2\% for the 1st year, 3%\displaystyle 3\% for the second year and 4%\displaystyle 4\% for the 3rd year. Find the amount to be paid after 3 years.

If Rs. 1,000\displaystyle \text{Rs. }1,000 be invested at interest rate of 5%\displaystyle 5\% and the interest be added to the principal every 10\displaystyle 10 years, then the number in years in which it will amount to Rs. 2,000\displaystyle \text{Rs. }2,000 is:

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