Question

Find the compound interest on 80,000 for 3
years if the rates for 3 years are 4%, 5% and
10%, respectively.​

Answer 1

Compound Interest = ₹16096

Step-by-step explanation:

GIVEN

Principal = 80000

Time = 3 years

Rate = 4% , 5% , 10%

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TO FIND

Compound Interest

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We know that,

Amount = ( Principal × ( Rate + 100 ) × Time ) / 100

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Amount for first year

Amount = ( 80000 × ( 4 + 100 ) × 1 ) / 100

Amount = ( 80000 × 104 × 1 ) / 100

Amount = 8320000 / 100

Amount = 83200

Amount = ₹83200

Amount for first year = ₹83200

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Amount for second year

Amount = ( 80000 × ( 5 + 100 ) × 1 ) / 100

Amount = ( 83200 × 105 × 1 ) / 100

Amount = 8736000 / 100

Amount = 87360

Amount = ₹87360

Amount for second year = ₹87360

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Amount for third year

Amount = ( 87360 × ( 10 + 100 ) × 1 ) / 100

Amount = ( 87360 × 110 × 1 ) / 100

Amount = 9609600 / 100

Amount = 96096

Amount = ₹96096

Amount for third year = ₹96096

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Now

Let's find the compound interest

We know that,

Compound Interest = Amount - Principal

Compound Interest = 96096 - 80000

Compound Interest = 16096

Compound Interest = ₹16096