If the rate of interest be 16% per annum for the first year, 20% per annum for the second year and 15% per annum for the third year, then find the compound interest on Rs.15,000 for three years.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e.Rs.9,012.
We know that,
C.I. = P(1 + R/100)T - P
where, C.I. = Compound Interest, P = Principal, R = Rate, and T = Time
Total amount after 1 year = 15000(1 + 16/100) = 17400
CI = 17400 - 15000 = Rs.2400
For 2nd year, Principle = 17400
Total amount after 2nd year = 17400(1 + 20/100) = 20880
CI = 20880 - 17400 = 3480
For 3rd year, Principle = 20880
Total amount after 3rd year = 20880(1 + 15/100) = 24012
CI = 24012 - 20880 = Rs.3132
Total Cl = 2400 + 3480 + 3132 = Rs.9012