Question

Find the compound interest on Rs. 3125 for 3 years if the rates of interest for the first, second and the
third year are respectively 4%, 5% and 6% per annum.

Answer 1

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It is given that

▪︎Principal (P) = 3125

▪︎Rate of interest for continuous = 4%,5% and 6%

▪︎Period (n) = 3 years

We know that,

▪︎Amount = P (1 + r/100)^n

Substituting the values

= 3125 (1 + 4/100) (1 + 5/100) (1 + 6/100)

By further calculation,

= 3125 × 26/25 × 21/20 × 53/50

= 3617.25

Here,

▪︎CI = A − P

Substituting the values,

= 3617.25 − 3125

= 492.25