Multiple choice

Rs.2700 becomes Rs.3600 at a certain rate of interest compounded annually in 5 years. Then find the amount at the end of 15th year.

  1. 6400

  2. 6500

  3. 4500

  4. 6000

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The amount formula for compound interest is A = P(1 + r/100)ⁿ. Given that Rs. 2700 becomes Rs. 3600 in 5 years: 3600/2700 = 4/3 = (1 + r/100)⁵. After 15 years (three 5-year periods), the amount will be 2700 × (4/3)³ = 2700 × 64/27 = 6400. This matches option A. The key insight is that 15 years = 3 × 5 years, so we cube the 5-year growth factor.