Question

Calculate the amount of Rs. 15,000 is lent at compound interest for 2 years and the rates for the successive years are 8% and 10% respectively.

Answer 1

Given : P = Rs. 15,000; n = 2 years;  r₁ = 8 % and r₂ = 10%

Amount = `"P"( 1 + r_1/100)( 1 + r_2/100)`

              = `15000( 1 + 8/100 )( 1 + 10/100)`

              = `15,000(27/25)(11/10)`

              = Rs. 17,820.