Ram invests ₹ 5000 in a bond which gives interest at 4%

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Ram invests ₹ 5000 in a bond which gives interest at 4% per annum during the first year, 5% during the second year and 10% during the third year. How much does he get at the end of third year ?

1. ₹ 7000
2. ₹ 5006
3. ₹ 6006
4. ₹ 5506

Correct Option: C

We can find required answer with the help of given formula ,

A = P

1 +

r₁

1 +

r₂

1 +

r₃

100

100

100

Here, P = ₹ 5000 , r₁7 = 4% , r₂ = 5% , r₃ = 10%

A = 5000		1 +	4			1 +	5			1 +	10
			100				100				100

A = 5000 ×	26	×	21	×	11
	25		20		10

A = ₹ 6006.