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Mathematics

Calculate the amount and the compound interest on ₹17000 in 3 years when the rate of interest for successive years is 10%, 10% and 14% respectively.

Compound Interest

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Answer

Principal for first year = ₹17000.

Interest for the first year = ₹ 17000×10×1100=170000100\dfrac{17000 \times 10 \times 1}{100} = \dfrac{170000}{100} = ₹1700.

Amount after one year = ₹17000 + ₹1700 = ₹18700.

Principal for the second year = ₹18700.

Interest for the second year = ₹ 18700×10×1100=187000100\dfrac{18700 \times 10 \times 1}{100} = \dfrac{187000}{100} = ₹1870.

Amount after 2 years = ₹18700 + ₹1870 = ₹20570.

Principal for the third year = ₹20570.

Interest for the third year = ₹ 20570×14×1100=287980100\dfrac{20570 \times 14 \times 1}{100} = \dfrac{287980}{100} = ₹2879.80

Amount after 3 years = ₹20570 + ₹2879.80 = ₹23449.80

Compound interest = Final amount - Principal = ₹23449.80 - ₹17000 = ₹6449.80

Hence, the amount and the compound interest are ₹23449.80 and ₹6449.80 respectively.

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