Question

. A man lends 12,500 at 12% for the first
year, at 15% for the second year and at 18%
for the third year. If the rates of interest are
compounded yearly; find the difference
between the C.I. of the first year and the
compound interest for the third year.​

Answer 1

Answer:

A=P(1+100R)

A=12500(1+10012)

For first year,

A=12500(100112)=14000

For second year,

A=14000(100115)=16100

Also, for third year

A=16100(100118)=18898

then Interest for first year =14000−12500=1500

And interest for third year=18998−16100=2898

Diff of interest between third and first year=2898−1500=1398