Basanthi deposited ₹50,000 in a co-operative bank which is…

Basanthi deposited ₹50,000 in a co-operative bank which is giving compound interest at the rate of 10% per annum. What will be her interest in the 3rd year?

Show answer & explanation

Correct answer: B

Explanation

The correct answer is option 2 i.e. ₹6,050.

A = $P(1 + {R\over100})^T$

For 3 years:

⇒ A₃ = $50000(1 + {10\over100})^3$

⇒ A₃ = $50000(1 + 0.1)^3$

⇒ A₃ = $50000(1.1)^3$

⇒ A₃ = ₹66550

For 2 years:

⇒ A₂ = $50000(1 + {10\over100})^2$

⇒ A₂ = $50000(1 + 0.1)^2$

⇒ A₂ = $50000(1.1)^2$

⇒ A₂ = ₹60500

Thus,

Interest in 3rd year = A₃ - A₂

⇒ 66550 - 60500 = ₹6050

SSC CHSL 2023 PYQ — Question 68