Question

Bhanu deposits 5000 at 9% per annum for 3 years with the interest compounded annually. Determine the compound interest received at the end of 3rd year.​

Answer 1

Compound Interest on Rs.5,000 for 3 years [assuming compounding is done once in a year and no repayment]

1st year interest at 8% = 400 ===> New Principal at 1st year end 5,400/-

2nd year interest at 10% = 540 ===> New Principal at 2nd year end 5,940/-

3rd year interest at 12% = 712.80 ===> New Principal at 3rd year end 6,652.80