Question

Find the compound interest, if the rate of interest for first year is 7% per annum, for second year 8% per annum and for third year is 10% per annum at Rs.12,25,000.
1. Rs 3,32,171
2. Rs.2,16,145
3. Rs.1,45,567
4. Rs.2,34,456

Answer 1

Correct Answer - Option 1 : Rs 3,32,171

Given

Principal = Rs.12,25,000

Formula used

Amount = Principal (1 + R₁%) (1 + R₂%) (1 + R₃%)

Where R₁ , R₂ and R₃ are rate of interest

Calculation

Amount = 12,25,000 (107/100) (108/100) (110/100)

⇒ Rs.15,57,171

Compound interest = 15,57,171 - 12,25,000

⇒ Rs.3,32,171

∴ Compound interest is Rs 3,32,171