HomeTestsSearchRankProfile
mediumMCQCompetitive Exam2026Quantitative Aptitude
1 mark

Ankur invested a sum of for four years in a financial scheme. The rate of interest in the scheme is per annum compounded yearly for the first two years and per annum for the 3rd and 4th years compounded yearly. What will be the cumulative compound interest at the end of 4 years?

  1. A
  2. B
  3. C
  4. D

Solution & Step-by-step Explanation

Let the initial principal amount be .
The overall compound amount () at the close of 4 years with variable annual interest rates is formulated as:



Given: for the first two years, and for the final two years.









The total compound interest accrued () is derived by subtracting the original principal from the total final amount:



Practice this question

Try it yourself before checking the explanation above.

Ankur invested a sum of for four years in a financial scheme. The rate of interest in the scheme is per annum compounded yearly for the first two years and per annum for the 3rd and 4th years compounded yearly. What will be the cumulative compound interest at the end of 4 years?
A
B
C
D

Share This Question

Related Questions

Ready for a Full Test?

Practice with timed mock tests and track your performance across Quantitative Aptitude.

Discussion