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Calculate the Arnount and the Cornpound Interest for the Following: - Mathematics

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Question

Calculate the arnount and the cornpound interest for the following: 

Rs 20,000 for 3 years at `7 1/2 %` for the first year, 8% for the second year and 10% for the third year. 

Sum
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Solution

P = Rs 20000;

(i) Interest for he first year

T = 1 year , R = `7 1/2 %` for first year = `15/2 %`

`= ("Rs"  20000 xx 15/2 xx 1)/100`

`= ("Rs" 20000 xx 15 xx 1)/ (2 xx 100)`

= Rs 1500

(ii) Principal for the second year

= Amount after one year

= Rs 20000 + Rs 1500

= Rs 21500

(iii) Interest for the second year

T = 1 year , R = 18 % for second year

`= ("Rs"  21500 xx 8 xx 1)/100`

= Rs 1720

(iv) Principal for the third year

= Amount after second year

= Rs 21500 + Rs 1720

= Rs 23220

(v) Interest for the third year

t = 1 year , R = 10 % for second year

`= ("Rs"  23220 xx 10 xx 1)/100`

= Rs 2322

Therefore Amount at the end of 3rd year

= Rs 23220 + Rs 2322

= Rs 25542

Amount = Rs 25542

C.I. = A - P

= Rs (25542 - 20000)

C.I. = Rs 5542

shaalaa.com
Concept of Compound Interest - Compound Interest as a Repeated Simple Interest Computation with a Growing Principal
  Is there an error in this question or solution?
Chapter 1: Compound Interest - Exercise 1.2 [Page 8]

APPEARS IN

Frank Mathematics - Part 2 [English] Class 10 ICSE
Chapter 1 Compound Interest
Exercise 1.2 | Q 1.4 | Page 8

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