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 what is the compound interest on Rs.10000 for 3 years ?

For variable compound interest, the final amount equals the principal multiplied by (1 + R1/100) multiplied by (1 + R2/100) multiplied by (1 + R3/100). This becomes 10000 multiplied by 1.04, then by 1.05, and then by 1.06, which equals 11575.20. Subtracting the original principal of Rs. 10000 from this total gives a compound interest of Rs. 1575.20.

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