calculate the amount and compound interest on 25000 for 3 years, the rates of interest for the successive years are 6%,8%,10% respectively without formula
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Answer:
use only this formula
Step-by-step explanation:
The man will receive an interest of 8% in the first year, 10% in the second year and 15% in the third year.
Therefore,
Amount = P( 1 + r1100)(1 + r2100)(1 + r3100)
⟹ A = $ 12,000(1 + 8100)(1 + 10100)(1 + 15100)
⟹ A = $ 12,000 (1 + 8/100)(1 + 10/100)(1 + 15/100)
⟹ A = $ 12,000 × 267/25 × 11/10 × 23/20
⟹ A = $ 12,000 × 68315000
⟹ A = $ 16,394.40
Therefore, the required amount = $ 16,394.40
Therefore, the compound interest = Final amount - Initial principal
= $ 16,394.40 - $12,000
= $ 4,394.40
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