Question

2. Find the compound interest on Rs.25, 000 after 2 years compounded

Answer 1

Answer:25,000 in 2 years at annual compound interest, if the rates for the successive years be 4% and 5% per annum respectively is: (1) Rs. 30,000 (2) Rs. 26,800 fa) Rs.

A=P[1+  

100

r

​  

]  

n

 

⇒  A=Rs.25,000×(  

100

106

​  

)  

3

 

⇒  25,000×  

50

53

​  

×  

50

53

​  

×  

50

53

​  

 

⇒  A=Rs.29,775.40

⇒  CI=A−P

⇒  Rs.29,775.40−Rs.25,000

∴   CompoundInterest=Rs.4775.40.