Question:medium
A man lends some money to his friend at 5% per annum of interest rate. After 2 years, the difference between the Simple and the compound interest on money is Rs. 50. What will be the value of the amount at the end of 3 years if compounded annually?
A man lends some money to his friend at 5% per annum of interest rate. After 2 years, the difference between the Simple and the compound interest on money is Rs. 50. What will be the value of the amount at the end of 3 years if compounded annually?
Updated On: Aug 18, 2026
- 21325.6
- 24512.5
- 22252.7
- 23152.5
Show Solution
The Correct Option is D
Solution and Explanation
Step 1: For 2 years, \(CI-SI=P r^{2}\); with \(r=0.05\), \(P(0.0025)=50\), so \(P=20000\).
Step 2: \((1.05)^{3}=1.157625\).
Step 3: Amount \(=20000\times1.157625=23152.5\).
\[ \boxed{Rs.\ 23152.5} \]
Step 2: \((1.05)^{3}=1.157625\).
Step 3: Amount \(=20000\times1.157625=23152.5\).
\[ \boxed{Rs.\ 23152.5} \]
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