Comund intrest principal 4000 rupees rate 25% time 3year
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Class 11
>>Applied Mathematics
>>Basics of financial mathematics
>>Accumulation with simple and compound interest
>>Find the compound interest on Rs.4,000 a
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Find the compound interest on Rs.4,000 accrued in three years, when the rate of interest is 8% for the first year and 10% per year for second and third year.
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Interest for the first year =
100
P×R×T
=
100
4,000×8×1
= Rs.320
Amount for the first year = Rs.4,000 + Rs. 320 = Rs. 4,320
Interest for the second year =
100
P×R×T
=
100
4,320×10×1
= Rs.432
Amount for the second year = Rs.4,320 + Rs. 432 = Rs. 4,752
Interest for the third year =
100
P×R×T
=
100
4,752×10×1
= Rs.475.20
Amount for the third year = Rs.4,752 + Rs. 475.20 = Rs. 5,227.20
So, the compound interest = Rs. 5,227.20 - Rs.4,000 = Rs.1,227.20