Rs 7,500 is burrowed at compound Interest at the rate of 2% for the first year, 4% for the second year and 5% for the third year. The amount paid after 3 years will be-

Options

A. Rs 8,235
B. Rs 8,520.20
C. Rs 8,353.80
D. Rs 8,432

Answer

To calculate the total amount paid after 3 years when Rs 7,500 is borrowed at compound interest with varying rates, we can follow these steps:

### Step 1: Calculate the interest for the first year.
- Principal (P) = Rs 7,500
- Rate for the first year (R1) = 2%
- Interest for the first year (I1) = P × R1 × (1/100) = 7500 × 2/100 = Rs 150

### Step 2: Calculate the amount at the end of the first year.
- Amount after the first year (A1) = Principal + Interest for the first year = 7500 + 150 = Rs 7,650

### Step 3: Calculate the interest for the second year.
- New Principal for the second year = Rs 7,650
- Rate for the second year (R2) = 4%
- Interest for the second year (I2) = New Principal × R2 × (1/100) = 7650 × 4/100 = Rs 306

### Step 4: Calculate the amount at the end of the second year.
- Amount after the second year (A2) = New Principal + Interest for the second year = 7650 + 306 = Rs 7,956

### Step 5: Calculate the interest for the third year.
- New Principal for the third year = Rs 7,956
- Rate for the third year (R3) = 5%
- Interest for the third year (I3) = New Principal × R3 × (1/100) = 7956 × 5/100 = Rs 397.80

### Step 6: Calculate the amount at the end of the third year.
- Amount after the third year (A3) = New Principal + Interest for the third year = 7956 + 397.80 = Rs 8,353.80

### Final Amount
The total amount paid after 3 years is Rs 8,353.80.

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