Question

shivam wants to deposit rs, 5000 for consecutive years, the compound interest rate received for these years would be 3% ,2% and 1% respectively then find the amount he will received at the end

Answer 1

Answer :

₹5,300

Explanation :

When the rate on an amount is compounded in consecutive years we use,

$\sf \: Amount = p \bigg(1 + \dfrac{r_1}{100} \bigg)\bigg(1 + \dfrac{r_2}{100} \bigg)$

Where,

$\sf \: r_1 \: and \: r_2$ denotes the rate of consecutive years.

So,

The amount Shivam will recives after 3 years is given by,

$\sf \: Amount = p \bigg(1 + \dfrac{r_1}{100} \bigg)\bigg(1 + \dfrac{r_2}{100} \bigg) \bigg(1 + \dfrac{r_3}{100} \bigg)$

Where,

• p(principal) = 5,000
• $\sf \: r_1, \: r_2 \: and \: r_3$ are the rate of three consecutive years 3%, 2%, and 1%

By the given values,

$\sf \longrightarrow \: 5000\bigg(1 + \dfrac{3}{100} \bigg)\bigg(1 + \dfrac{2}{100} \bigg)\bigg(1 + \dfrac{1}{100} \bigg)$

$\sf \longrightarrow \: 5000\bigg( \dfrac{103}{100} \bigg)\bigg( \dfrac{102}{100} \bigg)\bigg( \dfrac{101}{100} \bigg)$

$\sf \longrightarrow \: 5000(1.03)(1.02)(1.01)$

$\sf \longrightarrow \: 5300(approx.)$

Required answer ≈ ₹5,300