Question
If the rate of interest be 4% per annum for first year, 5% per annum for second year and 6% per annum for third year, then the compound interest of Rs.10,000 for 3 years will be
Answer: Option C
Answer: (c)Using Rule 3,If there are distinct 'rates of interest' for distinct time periods i.e.,Rate for 1st year → $r_1$%Rate for 2nd year → $r_2$%Rate for 3rd year → $r_3$% and so onThen A = P$(1 + r_1/100)(1 + r_2/100)(1 + r_3/100)$...C.I. = A - P
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Answer: (c)Using Rule 3,If there are distinct 'rates of interest' for distinct time periods i.e.,Rate for 1st year → $r_1$%Rate for 2nd year → $r_2$%Rate for 3rd year → $r_3$% and so onThen A = P$(1 + r_1/100)(1 + r_2/100)(1 + r_3/100)$...C.I. = A - P
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