Question

Calculate the compound interest accrued on Rs. 6,000 in 3 years, compounded yearly, if the rates for the successive years are 5%, 8% and 10% respectively.

Answer 1

Given : P=Rs6,000; n= 3years; r₁= 5%; r₂= 8% and r₃ =10%

Amount= P[$(1+\frac{R_1}{100})$ $\times$ $(1+\frac{R_2}{100}$)$\times$ $(1+\frac{R_3}{100}$)]

= 6000[$(1+\frac{5}{100})$ $\times$ $(1+\frac{8}{100}$)$\times$ $(1+\frac{10}{100}$)]

= Rs7,484.40

C.I. = Rs7,484.40 - Rs6,000 = Rs1,484.40