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Calculate the Amount and the Compound Interest for the Following : - Mathematics

Sum

Calculate the amount and the compound interest for the following :

Rs. 12500 for 2 years at 8% for the first year and 10% for the second year.

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Solution

P = Rs. 12500;

(i) Interest for the first year

T = 1 year , R = 8 % for first year

`= ("Rs"  12500 xx 8 xx 1)/100`

`= "Rs"  1000`

(ii) Principal for the second year 

= Amount after one year

= Rs 12500 + Rs 1000

= Rs 13500

(iii) Interest for the second year

T = 1 year , R = 10% for second year

`=("Rs"  13500 xx 10 xx 1)/100`

= Rs 1350

Therefore ,Amount at the end of 2nd year

= Rs 13500 + Rs 1350

Amount = Rs 14850

C.I. = A - P

= Rs (14850 - 12500)

C.I. = Rs 2350

Concept: Concept of Compound Interest - Compound Interest as a Repeated Simple Interest Computation with a Growing Principal
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APPEARS IN

Frank ICSE Class 10 Mathematics Part 2
Chapter 1 Compound Interest
Exercise 1.2 | Q 1.1 | Page 8
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