Calculate the compound interest accrued on ₹ 6000 in 3 years, compounded yearly, if the rates for the successive years are 5%, 8% and 10% respectively.

Given,

P = ₹ 6000

r₁ = 5%

r₂ = 8%

r₃ = 10%

n = 3 years

By formula,

A = $P\Big(1 + \dfrac{r$1}{100}\Big)\Big(1 + \dfrac{r2}{100}\Big)\Big(1 + \dfrac{r_3}{100}\Big)

Substituting values we get :

$A = 6000 \times \Big(1 + \dfrac{5}{100}\Big) \times \Big(1 + \dfrac{8}{100}\Big) \times \Big(1 + \dfrac{10}{100}\Big) \\[1em] = 6000 \times \dfrac{105}{100} \times \dfrac{108}{100} \times \dfrac{110}{100} \\[1em] = 6000 \times \dfrac{21}{20} \times \dfrac{27}{25} \times \dfrac{11}{10} \\[1em] = \dfrac{30 \times 21 \times 27 \times 11}{25} \\[1em] = \dfrac{187110}{25} \\[1em] = ₹7484.40$

By formula,

C.I. = A - P = ₹ 7484.40 - ₹ 6000 = ₹ 1484.40

Hence, compound interest = ₹ 1484.40