CA Foundation · Quantitative Aptitude · Sequence and Series
Meera invests ₹1,000 at the end of every year for 3 years in a scheme paying 10% p.a. compound interest. What is the accumulated value immediately after the third deposit? (Deposits are made at year-ends 1, 2 and 3.)
The accumulated value is ₹3,310. The deposits grow to 1,210, 1,100 and 1,000, which form a GP with ratio 1.1 and sum 1,000 × (1.1³ − 1)/0.1 = ₹3,310. Simply adding the deposits gives ₹3,000, ignoring interest.
- A₹3,641
- B₹3,310Correct
- C₹3,000
- D₹3,100
Explanation
Deposit at end of year 1 grows for 2 years: 1,000×1.21 = 1,210; year 2 deposit grows 1 year: 1,100; year 3 deposit: 1,000. Total = ₹3,310, a GP with a = 1,000, r = 1.1, n = 3: 1,000×(1.331−1)/0.1 = 3,310. ₹3,641 would be for four deposits or deposits at start of each year.
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