Question

If the rate of interest be 4% per annum for first year, 5% per annum for second year, and 6% per annum for third year, then what is the compound interest on Rs.10000 for 3 years ?

• A. Rs.1545.20
• B. Rs.1555.20
• C. Rs.1565.20
• D. Rs.1575.20

Answer 1

The correct option is D Rs.1575.20

$A=P(1+\frac{r_1}{100})(1+\frac{r_2}{100})(1+\frac{r_3}{100})$

$\Rightarrow A=10000(1+\frac{4}{100})(1+\frac{5}{100})(1+\frac{6}{100})$

$=10000\times \frac{104}{100}\times \frac{105}{100}\times \frac{106}{100}=Rs.11575.20$

$\therefore C.I.=Rs.11575.20-Rs.10000=Rs.1575.20$