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Lisa [10]
3 years ago
8

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

Mathematics
1 answer:
STatiana [176]3 years ago
7 0

Answer:

Amount = Rs. 30250 when Rate = 10%

<em>Amount = Rs. 31360 when Rate = 12%</em>

Step-by-step 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 + \frac{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 + \frac{10\%}{1})^{1 * 2}

A = 25000 * (1 + \frac{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;

<em>Amount = Rs. 30250 when Rate = 10%</em>

When Rate = 12%, we have:

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

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

A = 25000 * (1 + \frac{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;

<em>Amount = Rs. 31360 when Rate = 12%</em>

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