Multiple choice

A sum of money amounts to ₹6,000 in 2 years and ₹7,200 in 3 years at compound interest. What will it amount to in 5 years?

  1. ₹10,800

  2. ₹9,600

  3. ₹10,368

  4. ₹9,200
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

For compound interest, A = P(1+r)^n. A2 = P(1+r)^2 = 6000, A3 = P(1+r)^3 = 7200. (1+r) = 7200/6000 = 1.2. A5 = A3 * (1+r)^2 = 7200 * (1.2)^2 = 7200 * 1.44 = 10368.

AI explanation

Since the amount is Rs. 6,000 in 2 years and Rs. 7,200 in 3 years, the interest for the third year is Rs. 1,200, meaning the common ratio is 7200 divided by 6000, or 1.2. To find the amount in 5 years, multiply the 3-year amount by the common ratio twice, giving 7200 * 1.2 * 1.2, which equals Rs. 10,368.

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