Final answer:
To find the compound interest, use the formula A = P(1 + r/n)^(nt), where A is the final amount, P is the principal, r is the rate of interest, n is the number of times interest is compounded per year, and t is the number of years. Calculate the amount after each year and then subtract the principal to find the compound interest.
Step-by-step explanation:
To find the compound interest, we need to use the formula: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal, r is the rate of interest, n is the number of times interest is compounded per year, and t is the number of years.
First, let's calculate the amount after 1 year: A = 50000(1 + 0.05/1)^(1*1) = 50000(1 + 0.05) = 52500
Next, let's calculate the amount after 2 years: A = 52500(1 + 0.06/1)^(1*2) = 52500(1 + 0.06)^2 = 55389
Finally, let's calculate the amount after 3 years: A = 55389(1 + 0.1/1)^(1*3) = 55389(1 + 0.1)^3 = 63924
The compound interest is the difference between the final amount and the principal: Compound Interest = 63924 - 50000 = 13924