Question

Compound interest on ₹10000 for 3 years if rate of interest is $5\%$, $8\%$ and $10\%$ for first, second and third years respectively is _____.

• A. ₹2474
• B. ₹2774
• C. ₹2447
• D. ₹7247

Answer 1

The correct option is A ₹2474

Formula for the calculation of amount to be paid for successive rate of interest is :
$A=Principal\times \frac{100+R_1}{100}\times \frac{100+R_2}{100}\times \frac{100+R_3}{100}$
On using above formula, the amount after 3 years is:
$=Principal\times \frac{100+5}{100}\times \frac{100+8}{100}\times \frac{100+10}{100}$

$=₹10000\times \frac{21}{20}\times \frac{27}{25}\times \frac{11}{10}=Rs.12474$

$\therefore$ Compound interest = ₹12474 – ₹10000 = ₹2474