The CI on Rs.9500 for 3 years at 5% for first year, 7% for second year, 10% for the third year will be?Rs.2560.48Rs.2340.67Rs.2240.57Rs.2241.67
Question
The CI on Rs.9500 for 3 years at 5% for first year, 7% for second year, 10% for the third year will be?
- Rs.2560.48
- Rs.2340.67
- Rs.2240.57
- Rs.2241.67
Solution
To calculate the compound interest (CI) on Rs.9500 for 3 years with different interest rates for each year, we follow these steps:
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Calculate the interest for the first year: Interest for the first year = Principal amount * Rate of interest = 9500 * 5/100 = Rs.475
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Add the interest for the first year to the principal amount to get the new principal amount for the second year: New principal amount = Principal amount + Interest for the first year = 9500 + 475 = Rs.9975
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Calculate the interest for the second year: Interest for the second year = New principal amount * Rate of interest = 9975 * 7/100 = Rs.698.25
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Add the interest for the second year to the new principal amount to get the new principal amount for the third year: New principal amount = New principal amount + Interest for the second year = 9975 + 698.25 = Rs.10673.25
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Calculate the interest for the third year: Interest for the third year = New principal amount * Rate of interest = 10673.25 * 10/100 = Rs.1067.325
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Add the interest for the third year to the new principal amount to get the final amount: Final amount = New principal amount + Interest for the third year = 10673.25 + 1067.325 = Rs.11740.575
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Subtract the original principal amount from the final amount to get the compound interest: CI = Final amount - Original principal amount = 11740.575 - 9500 = Rs.2240.575
So, the compound interest on Rs.9500 for 3 years at 5% for the first year, 7% for the second year, and 10% for the third year is approximately Rs.2240.57. Therefore, the closest answer is Rs.2240.57.
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