2. Find the compound interest on 2500 for 3 years at 10% per annum for the first year, 12% per
annum for the second year and 15% per annum for the third year.
Answers
Answer:
the compound interest on 2500 for 3 years at 10% per annum for the first year,
Calculate:
Total P+I (A)
Where: A = P(1 + r/n)^(nt)
Principal (P): $ 2,500.00
Rate (R): % annual 10
Compound (n): Compounding Annually (1/Yr)
Time (t in years): 1
Answer:
A = $ 2,750.00
A = $ 2,750.00A = P + I where
A = $ 2,750.00A = P + I whereP (principal) = $ 2,500.00
A = $ 2,750.00A = P + I whereP (principal) = $ 2,500.00I (interest) = $ 250.00
12% per annum for the second year and
Calculate:
Total P+I (A)
Where: A = P(1 + r/n)^(nt)
Principal (P): $ 2,750.00
Rate (R): % annual 12
Compound (n): Compounding Annually (1/Yr)
Time (t in years): 1
Answer:
A = $ 3,080.00
A = $ 3,080.00A = P + I where
A = $ 3,080.00A = P + I whereP (principal) = $ 2,750.00
A = $ 3,080.00A = P + I whereP (principal) = $ 2,750.00I (interest) = $ 330.00
15% per annum for the third year.
Calculate:
Total P+I (A)
Where: A = P(1 + r/n)^(nt)
Principal (P): $ 3,080.00
Rate (R): % annual 15
Compound (n): Compounding Annually (1/Yr)
Time (t in years): 1
Answer:
A = $ 3,542.00
A = $ 3,542.00A = P + I where
A = $ 3,542.00A = P + I whereP (principal) = $ 3,080.00
A = $ 3,542.00A = P + I whereP (principal) = $ 3,080.00I (interest) = $ 462.00
So the final compound interest after 3 years is Rs 1042.