A man lends ₹12500 at $12 %$ for the first year, at $15 %$ for the second year and at $18 %$ for the third year. If the rates of interest are compounded yearly; then the total amount paid by him at the end of third year is ______

₹19998

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₹18998

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₹17998

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₹16998

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Solution

The correct option is B ₹18998
Formula for the calculation of amount to be paid for successive rate of interest is :

$A = P r i n c i p a l \times \frac{100 + R_{1}}{100} \times \frac{100 + R_{2}}{100} \times \frac{100 + R_{3}}{100}$
On using above formula, the amount after 3 years is:
$= P r i n c i p a l \times \frac{100 + 12}{100} \times \frac{100 + 15}{100} \times \frac{100 + 18}{100}$

$= ₹ 10000 \times \frac{28}{25} \times \frac{23}{20} \times \frac{59}{50} = ₹ 18998$

$∴$ amount to be paid by him at the end of third year is ₹18998.

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A man lends ₹12500 at 12% for the first year, at 15% for the second year and at 18%for the third year. If the rates of interest are compounded yearly; then the total amount paid by him at the end of third year is ______

A man lends ₹12500 at $12 %$ for the first year, at $15 %$ for the second year and at $18 %$ for the third year. If the rates of interest are compounded yearly; then the total amount paid by him at the end of third year is ______