Question

3. Find the compound interest on 3125 for 3 years if the rates of interest for the first,
second and third year are respectively 4%, 5% and 6% per annum.
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Answer 1

Answer:

Step-by-step explanation:

P = 3125

T = 3 years

R1 % = 4% , R2% = 5%, R3% = 6%

A = P (1 + R/100)^T

A = 3125 ( 1 + 4 / 100) ( 1+ 5/100) (1+6/100)

= 3125 × 104/100 × 105/100 × 106/100

=3,617.25

CI = A - P

=3,617.25 - 3125

=492.25

Hope this helps