Question

a sum of money becomes rupees 64800 at compound interest if rate of interest in 3 years is 12.5% , 6.66% and 9.09% respectively .find compound interest ?​

Answer 1

The compound interest earned durint the three years is approximately Rs 35088.61 .

Let the principal amount at the beginning of three years is  Rs x.

Rate(R) = 12.5%

Time = 1 year

Amount of money after 1 year $= x(1+R)\div 100 = 1.125x$

The rate of interest for the second year is 6.66% .

New principal = 1.125x and Rate is 6.66%

Amount of money after 2 years $= 1.125x(1+0.0666)=1.199925x$

Now for the third year, we have the rate of interest as 9.09%.

Amount after three years $= 1.199925x(1+0.0909)=2.180981825x$

Now we know that the final amount is 64800.

Using a linear equation we can solve for the value of x.

$2.180981825x=64800\\x = 29711.389273\\x \approx 29711.39$

Compound interest earned in three years $= 64800- 29711.39 = 35088.61$

Therefore the compound interest earned by the amount of money is 35088.61.

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