Multiple choice

Anurag invests Rs. 9525 in a bond at a compound annual interest rate which gives interest at 3% per annum during the first year, 5% during the second year and 8% during the third year. How much amount does he get at the end of the third year.

  1. Rs. 11125.40

  2. Rs. 11050.60

  3. Rs. 12060.50

  4. Rs. 13025.40

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A Correct answer
Explanation

For compound interest with varying rates: Amount = Principal × (1 + r1/100) × (1 + r2/100) × (1 + r3/100). Amount = 9525 × (1.03) × (1.05) × (1.08) = 9525 × 1.03 × 1.05 × 1.08 = 9525 × 1.168... = Rs. 11125.40 (approximately).