What is the compound interest on Rs 10,000 over 3 years if the interest rates are 4% for the first year, 5% for the second year, and 6% for the third year?

Explanation

To calculate the compound interest, first find the amount after 3 years: Amount = 10000 × (1 + 0.04) × (1 + 0.05) × (1 + 0.06) = 10000 × 1.04 × 1.05 × 1.06 = Rs 11575.20. The compound interest is the amount minus the principal, which is 11575.20 - 10000 = Rs 1575.20.