Question

Find the amount and the compound interest on ₹ 4,000 in 2 years, if the rate of interest for the first year is 10% and for the second year is 15%.

Answer 1

Principal (P) = ₹4,000

Time (t) = 2 years

Rate (R₁) = 10% and rate (R₂) = 15%

Amount =`"P"xx(1+"R"_1/100)(1+"R"_2/100)`

`=₹4,000(1+10/100)(1+15/100)`

`=₹4,000xx11/10xx23/20`

= ₹5060

C.I. = Amount − Principal

= ₹5060 − ₹4000

= ₹1060