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What sum of money will amount to rupees 1124.76 in 3 years, if the rate of interest is 5% for the first year, 4% for the second year and 3% for the third year?
  • a)
    1500
  • b)
    1200
  • c)
    1000
  • d)
    1900
  • e)
    None of these
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
What sum of money will amount to rupees 1124.76 in 3 years, if the rat...
1124.76 = p*(105/100)*(104/100)*(103/100)
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What sum of money will amount to rupees 1124.76 in 3 years, if the rat...
Simple Interest Calculation:

Given, Principal amount = ?
Rate of interest for the first year = 5%
Rate of interest for the second year = 4%
Rate of interest for the third year = 3%
Time period = 3 years
Total amount = Rs. 1124.76

Let us calculate the interest for each year separately and then add them to get the total amount.

Interest for the first year = P * R * T / 100
= P * 5 * 1 / 100
= 0.05P

Amount after the first year = P + 0.05P
= 1.05P

Interest for the second year = 1.05P * 4 * 1 / 100
= 0.042P

Amount after the second year = 1.05P + 0.042P
= 1.092P

Interest for the third year = 1.092P * 3 * 1 / 100
= 0.03276P

Amount after the third year = 1.092P + 0.03276P
= 1.12476P

Total amount after 3 years = Rs. 1124.76
1.12476P = Rs. 1124.76

Therefore, Principal amount P = Rs. 1000

Hence, the sum of money that will amount to Rs. 1124.76 in 3 years at the given interest rates is Rs. 1000.
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What sum of money will amount to rupees 1124.76 in 3 years, if the rate of interest is 5% for the first year, 4% for the second year and 3% for the third year?a)1500b)1200c)1000d)1900e)None of theseCorrect answer is option 'C'. Can you explain this answer?
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