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A sum of Rs. 1000 is invested on compound interest (Compounded annually) for three years. If the rate of interest is 10% per annum for the first two years and 50% per annum for the third year, what will be the interest?

Solution

✅ Correct Option: 3

After two years at 10%: 1000×1.1×1.1=12101000 \times 1.1 \times 1.1 = 1210.

After the third year at 50%: 1210×1.5=18151210 \times 1.5 = 1815.

Interest =1815−1000=815= 1815 - 1000 = 815 rupees.

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