Question

Calculate the amount and the compound interest on Rs.25,000 for 3 years, the rates of interest for the successive years being 8%, 9% and 10% compounded annually

Answer 1

S.I for 1st year = 8% × 25000 = 2000

Amount after 1 year = 25000 + 2000 = 27000

S.I for 2nd year = 9% × 27000 = 2430

0Amount after 2 years = 27000 + 2430 = 29430

S.I for 3rd year = 10% × 29430 = 2943

Amount after 3 years = 29430 + 2943 = 32373

S.I for 3 years = 2000 + 2430 + 2943

= Rs. 7373

Amount after 3 years = 25000 + 7373

= Rs. 32373