Question

Find compound interest on Rs 31250 for 3 years, if the rates of interest for 1^st,2^nd and 3^rd years be 8%, 10% and 12% respectively.

Answer 1

Here P = Rs.31250, t = 3 years, r = 8%, 10%, 12% successively.
Now, Amount
= `"P"(1 + "r"_1/100)(1 + "r"_2/100)(1 + "r"_3/100)`

= `31250(1 + 8/100)(1 + 10/100)(1 + 12/100)`

= `31250(108/100)(110/100)(112/100)`
= 41580
Hence, Amount = Rs.41580.