Multiple choice

A person deposited Rs. 1000 in a bank at 5% compounded annually. After 5 years, the rate of interest was increased to 6% and after 4 more years, the rate was further increased to 7%. The money was withdrawn at the end of 12 years. Find the amount.

  1. Rs. 1973.88

  2. Rs. 1937.86

  3. Rs. 1930.59

  4. Rs. 1903.95

  5. None of these
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A Correct answer
Explanation

Amount = 1000 * (1.05)^5 * (1.06)^4 * (1.07)^3. Calculating this: 1000 * 1.27628 * 1.26247 * 1.22504 = 1973.88.

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