An investor deposits ₹20,000 in a scheme offering 6% compound interest per annum. After 18 months, he adds ₹10,000 more. Find the total amount after 3 years from the initial deposit.
Show answer & explanation
Correct answer: B
Explanation
Principal₁ = 20000
Principal₂ = 10000
Rate = 6% per annum
Time₁ = 3 years
Time₂ = 1.5 years
A = P × (1 + r/100)ⁿ
A₁ = 20000 × (1.06)³
A₁ = 20000 × 1.191016
A₁ = 23820.32
A₂ = 10000 × 1.06 × (1 + 6/100 × 0.5)
A₂ = 10000 × 1.06 × 1.03
A₂ = 10000 × 1.0918
A₂ = 10918
Total Amount = 23820.32 + 10918
Total Amount = 34738.32