Question

Find the amount of Rs. 12500 for 2 years compounded annually, the rate of interest being 15% for the first year and 16% for the second year

Answer 1

Given, 

Principal = Rs.12500 

Time = 2 years

= R₁ = 15%

= R₂ =16%

Hence, 

Amount\(={p}[({1}+\frac{R_1}{100})]\) \([({1}+\frac{R_2}{100})]\)

\(={12500}[{1}+\frac{15}{100}]\) \([{1}+\frac{16}{100}]\)

\(={12500}\times\frac{23}{20}\times\frac{29}{25}\) = Rs. 16675