Find the amount of Rs.4000 for 3 years compounded annually, the rate of interest being 5% for the first 2 years and 10% for the next one year

To find the compound interest, we need to apply the formula:

A = P (1 + r/n)^(nt)

Where: A = the amount of money accumulated after n years, including interest. P = principal amount (the initial amount of money) r = annual interest rate (in decimal) n = number of times that interest is compounded per year t = time the money is invested for in years

Given: P = Rs.4000 r1 = 5% for the first 2 years r2 = 10% for the third year n = 1 (since it is compounded annually) t1 = 2 years t2 = 1 year

First, we calculate for the first 2 years:

A1 = P (1 + r1/n)^(nt1) A1 = 4000 (1 + 0.05/1)^(1*2) A1 = 4000 (1.05)^2 A1 = 4000 * 1.1025 A1 = Rs.4410

Next, we calculate for the third year. Now, the principal amount becomes the amount we got after 2 years, which is Rs.4410.

A2 = P (1 + r2/n)^(nt2) A2 = 4410 (1 + 0.10/1)^(1*1) A2 = 4410 (1.10)^1 A2 = 4410 * 1.10 A2 = Rs.4851

So, the amount of Rs.4000 for 3 years compounded annually, the rate of interest being 5% for the first 2 years and 10% for the next one year is Rs.4851.