A man got 10% of his investment as profit. If he invested Rs. 5000, and the profit was reinvested, what will be the total value after the second year with the same profit rate?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Rs. 6050.
Investment = 5000
After 1st year = 5000 × 1.1 = 5500
After 2nd year = 5500 × 1.1 = 6050