The compound interest on Rs. 75,000 for three years, at successive interest rates of 4%, 6% and 9% for each year respectively is:
Here's how to calculate the compound interest step-by-step:
Step 1: Calculate the interest for the first year.
Principal (P) = Rs. 75,000
Rate of interest (R1) = 4%
Time (T) = 1 year
Simple Interest (SI1) = (P * R1 * T) / 100 = (75000 * 4 * 1) / 100 = Rs. 3000
Amount after 1 year (A1) = P + SI1 = 75000 + 3000 = Rs. 78000
Step 2: Calculate the interest for the second year.
Principal (P) = A1 = Rs. 78000
Rate of interest (R2) = 6%
Time (T) = 1 year
Simple Interest (SI2) = (P * R2 * T) / 100 = (78000 * 6 * 1) / 100 = Rs. 4680
Amount after 2 years (A2) = A1 + SI2 = 78000 + 4680 = Rs. 82680
Step 3: Calculate the interest for the third year.
Principal (P) = A2 = Rs. 82680
Rate of interest (R3) = 9%
Time (T) = 1 year
Simple Interest (SI3) = (P * R3 * T) / 100 = (82680 * 9 * 1) / 100 = Rs. 7441.20
Amount after 3 years (A3) = A2 + SI3 = 82680 + 7441.20 = Rs. 90121.20
Step 4: Calculate the compound interest.
Compound Interest (CI) = A3 - Initial Principal = 90121.20 - 75000 = Rs. 15121.20
Therefore, the compound interest on Rs. 75,000 for three years is Rs. 15,121.20.
Why other options are incorrect: The other options result from incorrect calculations of the simple interest for each year and the final compound interest.
Important Questions from Miscellaneous Topics
- In communication the word 'Haptics' signifies :
- Which of the following statements best defines the scope of semiotics?
The value of x in the following figures is :
When a child reaches adolescence, there is apt to be a conflict between the parents and the child, since
the latter considers himself to be by now quite capable of managing his own affairs, while the former
are filled with parental solicitude, which is often a disguise for love of power. Parents consider, usually,
that the various moral problems which arise in adolescence are peculiarly their province. The options
they express, however, are so dogmatic that the young seldom confide in them, and usually go their
own way in secret.When an international team of pumped a carbon dioxide and water mix into underground basalt rocks,
basic chemistry took over. The acidic mixture dissolved rocks' calcium and magnesium and formed
limestone Basically carbon dioxide is converted into stone, exclaimed the scientists.
