Question

A Find the amount compounded annually on Rs 25,000 for 2 years if the rates of

interest for two years ore 10 % and 12 % respectively,​

Answer 1

Rs 30800

Explanation:

The formula for compound interest is

A = P[1 + (r/100)]^t, where

A = amount of compounded interest

P = principal amount

r = interest rate

Applying this to our question, we have

A = 25000 [1 + (10/100)] [1 + (12/100)]

A = 25000 (1 + 0.1) (1 + 0.12)

A = 25000 * 1.1 * 1.12

A = 25000 * 1.232

A = 30800