A man lends 12,500 at 12% for the first year, at 15% for the second year and at 18%
for the third year. If the rates of interest are
compounded yearly; find the difference
between the C. I. of the first year and the
compound interest for the third year.

$1398

Step-by-step explanation:

Given , Principal (P) =  $12,500

Rate of interest for 1st year =  12% =0.12

Rate of interest for 2nd year =  15% =0.15

Rate of interest for 3rd year =  18% =0.18

Interest for first year =

=

= $1500

Now, For second year new principal

Interest for second year =

=

= $2100

Now, For third year new principal

Interest for third year =

=

= $2898

Difference  between the compound interest of the first year and the  compound interest for the third year. = $2898 - $1500 = $1398

Hence, the difference  between the compound interest of the first year and the  compound interest for the third year is $1398 .

a

step-by-step explanation: