What sum(principal) will amount to Rs.34536.39 at compound interest in 3 years, the rate of interest for 1st, 2nd and 3rd year being 5%, 6% and 7% respectively? Marks : 2Negative Marks : 0Answer hereRs.25576Rs.29000 Rs.28012Rs.24000

To solve this problem, we need to use the formula for compound interest, which is A = P(1 + r/n)^(nt), where:

• A is the amount of money accumulated after n years, including interest.
• P is the principal amount (the initial amount of money).
• r is the annual interest rate (in decimal).
• n is the number of times that interest is compounded per year.
• t is the time the money is invested for in years.

However, in this case, the interest rate changes each year. So, we need to apply the formula for each year separately and then multiply the results together.

Let's denote the principal as P. After the first year, the amount of money will be P * (1 + 5/100) = P * 1.05.

After the second year, the amount of money will be P * 1.05 * (1 + 6/100) = P * 1.05 * 1.06.

After the third year, the amount of money will be P * 1.05 * 1.06 * (1 + 7/100) = P * 1.05 * 1.06 * 1.07.

We know that this amount is equal to Rs.34536.39. So, we can set up the equation and solve for P:

P * 1.05 * 1.06 * 1.07 = 34536.39 P = 34536.39 / (1.05 * 1.06 * 1.07)

After calculating the above expression, we find that P is approximately Rs.28012. So, the correct answer is Rs.28012.