calculate the amount and the compound interest on: ₹16000 in 3 years when rates of the interest for successive years are 10%, 14% and 15%.
Answers
Answer:
23073.6
Step-by-step explanation:
10% = 1/10
14% = 7/50
15% = 3/20
Add one to each term (1 + r/100) will be
1 + 1/10 = 11/10
1 + 7/50 = 57/50
1 + 3/20 = 23/20
Amount = Principal × (1 + r/100)³
In this case we will multiply the three (1+r/100) terms separately
Amount = 16000 × (11/10) × (57/50) × (23/20)
= 8 × 11 × 23 × 57/5 = 115368/5
= 23073.6
ALTERNATE METHOD (tree method):
P. 1st year. 2nd year. 3rd year
16000. 16000×(1/10). 16000×(7/50). 16000×(3/20)
16000×(1/10)×(7/50).
16000×(1/10)×(3/20)
16000×(7/50)×(3/20)
16000×(1/10)×(7/50)×(3/20)
P. 1st year. 2nd year. 3rd year
16000. 1600. 2240. 2400
224. 240
336
33.6
Amount = P + All values of 3 years
= 16000 + 1600 + (2240 + 224) + (2400 + 240 + 336 + 33.6)
= 16000 + 1600 + 2464 + 3009.6
= 23073.6