Question

6. Find the amount and the compound interest on rs18,750 after 3 years, compounded
annually, the rates of interest being 8% p.a., 10% p.a. and 12% p.a. during the first year,
second year and third year respectively​

Answer 1

Answer:

A=P(1+I)N

=18750(1+0.08)

=20250 for first year

20250(1+0.10)

=22275 for second year

22275(1+0.12)

=24948 for third year.

So, after 3 years he will received 24,948.