Question

Calculate the amount and the compound interest on Rs. $12,500$ in $3$ years when the rates of interest for successive years are $8\%$, $10\%$ and $10\%$ respectively.

• A. Rs. $16,335$ and Rs. $3,835$
• B. Rs. $14,853$ and Rs. $2,353$
• C. Rs. $15,664$ and Rs. $3,164$
• D. Rs. $17952$ and Rs.$5,452$
  

Answer 1

The correct option is A Rs. $16,335$ and Rs. $3,835$

$P=Rs.12,500$

$T=3$ years

$R=8\%,10\%,10\%,$

$A=?,C.I.=?$

$A=P{(1+\frac{R}{100})}^T$

$=12500(1+\frac{8}{100})(1+\frac{10}{100})(1+\frac{10}{100})$

$=12500\times \frac{108}{100}\times \frac{110}{100}\times \frac{110}{100}$

$=\frac{125\times 108\times 121}{100}$

$A=Rs.16,335$

$C.I.=A-P$

$C.I=16335-12500$

$C.I=Rs.3835$