If the rate of interest is 4 for the first year 5 for the second year and 6 for the third year then ...........

Quantitative Aptitude (MTS) Compound Interest

If the rate of interest is 4% for the first year, 5% for the second year and 6% for the third year, then find the compound interest

on Rs10,000 for 3 years, if interest is compounded annually?

This questions was previously asked in

SSC MTS 13th July 2022 Shift-1

Rs1,580.25

Rs1,575.20

Rs1,500.00

Rs1,570.50

- To calculate compound interest with different rates each year, you apply each year's rate to the new principal.

- Start with Rs10,000:

- First year: 4% interest = Rs10,000 * 4% = Rs400. New principal is Rs10,400.

- Second year: 5% interest on Rs10,400 = Rs10,400 * 5% = Rs520. New principal is Rs10,920.

- Third year: 6% interest on Rs10,920 = Rs10,920 * 6% = Rs655.20.

- The total amount is Rs10,920 + Rs655.20 = Rs11,575.20.

- Compound interest over 3 years is Rs11,575.20 - Rs10,000 = Rs1,575.20.

- Options:

- Option 1: Rs1,580.25

- Option 2: Rs1,575.20

- Option 3: Rs1,500.00

- Option 4: Rs1,570.50

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