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ExamsSSC CGL (Prelims)General

What will be the amount to be paid at the end of 3 years on Rs. 6000 at 5% per annum compounded annually?

  1. 6,845.75
  2. 7,045.75
  3. 6,945.75
  4. 6,955.75

Correct answer: 6,945.75

Solution

For annual compounding, amount after 3 years is \(6000(1.05)^3\). This equals \(6000 \times 1.157625 = 6945.75\). Hence the amount is Rs. 6,945.75.

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