Q. A man saves 2000 Rs. at the end of each year and invests the money at 5% compound interest. At the end of 3 years he will have :
Answer: 6305 Rs.
Notes: $latex Amount = 2000\left ( 1+\frac{5}{100} \right )^{2}+2000\left ( 1+\frac{5}{100} \right )&s=1$ $latex = 2000\times \left ( \frac{21}{20} \right )^{2}+2000\left ( \frac{21}{20} \right )&s=1$ $latex = 2000\times \frac{21}{20}\times \frac{41}{20} = 4305\ Rs.&s=1$ ∴ Required amount $latex = 4305 + 2000 = 6305 Rs.&s=1$ Hence option [D] is correct answer.

1