If the rate of interest be 4% per annum for first year, 5% per annum f

1.	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 ?
Answer» A=P\(\big(1+\frac{r_1}{100}\big)\big(1+\frac{r_2}{100}\big)\big(1+\frac{r_3}{100}\big)\) \(\Rightarrow\) A = 10000\(\big(1+\frac{4}{100}\big)\big(1+\frac{5}{100}\big)\big(1+\frac{6}{100}\big)\) =10000 x \(\frac{104}{100}\) x \(\frac{105}{100}\) x \(\frac{106}{100}\) = Rs 11575.20 \(\therefore \) C.I. = Rs 11575.20 – Rs 10000 = Rs 1575.20.

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 ?

Answer»

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

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

=10000 x \(\frac{104}{100}\) x \(\frac{105}{100}\) x \(\frac{106}{100}\) = Rs 11575.20

\(\therefore \) C.I. = Rs 11575.20 – Rs 10000 = Rs 1575.20.