the age of father 8 years ago was 8 times the age of his son. after 10 years the age of the father will be twice the age of the son find their present ages?
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Correct option is B)
Given:
Present value =₹ 25000
Interest rate for the first year, p=5% per annum
Interest rate for the second year, q=6% per annum
Interest rate for the third year, r=8% per annum
To find the amount we have the formula,
Amount (A)=P(1+(r/100))
n
where P is present value, r is rate of interest, n is time in years
Since here we have variable rates, we modify the formula to get:
Amount (A)=P×(1+p/100)×(1+q/100)×(1+r/100)
Now substituting the values in above formula we get,
∴A=25000×(1+5/100)×(1+6/100)×(1+8/100)
⇒A=25000×(105/100)×(106/100)×(108/100)
⇒A=₹ 30051
∴ Compound interest =A–P
=30051–25000=₹ 5051
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