Given:
Present value= ₹ 18000
Interest rate for first year, p= 12 % per annum
Interest rate for second year, q= 12 ½ % per annum
Amount (A) = P × (1+p/100) × (1+q/100)
Now substituting the values in above formula we get,
∴ A = 18000 × (1+12/100) × (1 + (25/2)/100)
⇒ A = 8000 × (112/100) × (1+25/200)
⇒ A = 8000 × (112/100) × (1+1/8)
⇒ A = 180 × 14 × 8
⇒ A = ₹ 22680
Shubhalaxmi has to pay ₹ 22680