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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,​

User Richa Garg
by
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1 Answer

5 votes

Answer:

Amount = Rs. 30250 when Rate = 10%

Amount = Rs. 31360 when Rate = 12%

Explanation:

Given


Principal, P = Rs.\ 25,000


Time, t = 2\ years


Rate; R_1 = 10\%


Rate; R_2 = 12\%

Number of times (n) = Annually


n = 1

Required

Determine the Amount for both Rates

Amount (A) is calculated by:


A = P(1 + (r)/(n))^(nt)

When Rate = 10%, we have:

Substitute 25,000 for P; 2 for t; 1 for n and 10% for r


A = 25000 * (1 + (10\%)/(1))^(1 * 2)


A = 25000 * (1 + (10\%)/(1))^(2)


A = 25000 * (1 + 10\%)^(2)

Convert 10% to decimal


A = 25000 * (1 + 0.10)^(2)


A = 25000 * (1.10)^(2)


A = 25000 * 1.21


A = 30250

Hence;

Amount = Rs. 30250 when Rate = 10%

When Rate = 12%, we have:

Substitute 25,000 for P; 2 for t; 1 for n and 10% for r


A = 25000 * (1 + (12\%)/(1))^(1 * 2)


A = 25000 * (1 + (12\%)/(1))^(2)


A = 25000 * (1 + 12\%)^(2)

Convert 12% to decimal


A = 25000 * (1 + 0.12)^(2)


A = 25000 * (1.12)^(2)


A = 25000 * 1.2544


A = 31360

Hence;

Amount = Rs. 31360 when Rate = 12%

User Kusi
by
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