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How Much Will Rs 25000 Amount to in 2 Years at Compound Interest, If the Rates for 1st and 2nd Years Be 4% and 5% P.A. Respectively?

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Question

How much will Rs 25000 amount to in 2 years at compound interest, if the rates for 1st and 2nd years be 4% and 5% p.a. respectively?

Sum
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Solution

Here P = Rs.25000, t = 2 years, r = 4%, 5% successively.
Now, Amount
= `"P"(1 + "r"_1/100)(1 + "r"_2/100)`

= `25000(1 + 4/100)(1 + 5/100)`

= `25000(104/100)(105/100)`
= 27300
Hence, Amount = Rs.27300.

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Concept of Compound Interest - Use of Compound Interest in Computing Amount Over a Period of 2 Or 3-years
  Is there an error in this question or solution?
Chapter 2: Compound Interest - Exercise 3.2

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Frank Mathematics Part 1 [English] Class 9 ICSE
Chapter 2 Compound Interest
Exercise 3.2 | Q 5
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