Question

Find the C.I on ₹ 15000 for 3 years if the rates of interest is 15%, 20% and 25% for I, II and III years respectively.

Answer 1

Principal (P) = ₹ 15000

rate of interest 1 (a) = 15% for year I

rate of interest 2 (b) = 20% for year II

rate of interest 3 (c) = 25% for year III

Formula for amount when rate of interest is different for different years is

Compound Interest (Cl) = A – P

= 25,875 – 15,000

= 10,875

Cl = ₹ 10,875