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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
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Solution

To calculate the compound interest (CI) on Rs.9500 for 3 years with different interest rates for each year, we follow these steps:

  1. Calculate the interest for the first year: Interest for the first year = Principal amount * Rate of interest = 9500 * 5/100 = Rs.475

  2. 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

  3. Calculate the interest for the second year: Interest for the second year = New principal amount * Rate of interest = 9975 * 7/100 = Rs.698.25

  4. 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

  5. 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

  6. 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

  7. 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.

This problem has been solved

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