Calculate the amount and the compound interest on ₹ 17000.

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.

Solution:

It is given that
Principal = ₹ 17000
Period = 3 years
Rate of interest for 3 successive years = 10%, 10% and 14%
We know that
Amount after 3 years = P (1 + r/100)n
Substituting the values
= 17000 (1 + 10/100) (1 + 10/100) (1 + 14/100)
By further calculation
= 17000 × 11/10 × 11/10 × 57/50
= ₹ 23449.80
Here
Amount of compound interest = A – P
Substituting the values
= 23449.80 – 17000
= ₹ 6449.80

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