Multiple choice

25,000/- is borrowed at compound interest at the rate of 3% for first year, 4% for 2nd year and 5% for 3rd year. Find the amount to be paid after 3 years.

  1. 28,119/-

  2. 28,120/-

  3. 28,118/-

  4. 28,117/-
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A Correct answer
Explanation

Amount = 25000 * (1.03) * (1.04) * (1.05) = 25000 * 1.12476 = 28119.

AI explanation

The amount after three years with varying rates is calculated as Principal * (1 + R1/100) * (1 + R2/100) * (1 + R3/100). Substituting the given values, we get 25000 * (1.03) * (1.04) * (1.05). Multiplying these factors gives 25000 * 1.12476. The final amount to be paid is 28119.

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