Question

calculate the amount and compund interest on RS 25000 for 3 yrs , compounded anually the rates of intersts for succesive yrs 8,9,10%respectivley?

Answer 1

Given

• Principal (P) = Rs 25000 /-
• Time period (T) = 3 years
• R₁ = 8 %
• R₂ = 9 %
• R₃ = 10 %

To find

• Amount (A)
• Compound interest (SI)

Solution

↦ Interest for the 1st year = PTR/100

• 25000×1×8/100
• Rs 2000 /-

↣ Amount at the end of 1st year = P + I

• 25000+2000
• Rs 27000 /-

↦ Interest for the 2nd year = PTR/100

• 27000×1×9/100
• Rs 2430 /-

↣ Amount at the end of 2nd year = P + I

• 27000+2430
• Rs 29430 /-

↦ Interest for the 3rd year = PTR/100

• 29430×1×10/100
• Rs 2943 /-

↣ Amount at the end of 3rd year = P + I

• 29430+2943
• Rs 32373 /-

→ Compound interest for 3 years

• 2000+2430+2943 = Rs 7373 /-

or

• CI = A-P
• 32373-25000
• Rs 7373 /-