CAT 2021 Interest Question (Medium)

Question

Anil invests some money at a fixed rate of interest, compounded annually. If the interests accrued during the second and third year are 806.25 and 866.72, respectively, the interest accrued, in INR, during the fourth year is nearest to

Accepted Answer

Step 1 Understand Compound Interest and Identify Given Information In compound interest, the interest accrued in a subsequent year is interest on the principal plus the accumulated interest from previous years. This means the interest itself also earns interest. The difference in interest between co

CAT 2021

Quantitative

Interest

Medium

$Anil invests some money at a fixed rate of interest, compounded annually. If the interests accrued during the second and third year are ₹ 806.25 and ₹ 866.72, respectively, the interest accrued, in INR, during the fourth year is nearest to$

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