Multiple choice

Find the compound interest for Rs.50000 for 3 years ,while the interest rate for first year is 10% , second year is 11% and for third year is 12%?

  1. $18376 Rs.$
  2. $14000 Rs$
  3. $15312 Rs$
  4. $16972 Rs$

  5. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

For varying interest rates, apply them sequentially to the amount. After Year 1: 50000 × 1.10 = 55000. After Year 2: 55000 × 1.11 = 61050. After Year 3: 61050 × 1.12 = 68376. Compound Interest = 68376 - 50000 = 18376. The claimed answer A is correct.

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