Calculate the amount and the compound interest on Rs. 20000 in 3 years when the rate of interest for the successive years is 10%, 10% and 12% per annum respectively.

Explanation

Here, Principal amount `(P) = 20000` Rs

So, amount after first year ` = 20000(1+10/100)^1`

Amount after second year ` = 20000(1+10/100)(1+10/100)^1`

Amount after third year ` = 20000(1+10/100)(1+10/100)(1+12/100)^1`

` = 20000**11/10**11/10**112/100 = 224**121 = 27104` Rs

`:.` Compound interest ` = 27104-20000 = 7104` Rs