Answer:
Step-bAmount at the end of 2 years = Rs. 21,160
Amount at the end of first year = Rs. 18,400
So interest for first year = Rs. 2400
Interest for second year = Rs. 2760
Explanation:
A = P (1 + r/n)^nt
P = 16,000
A = ?
r = 15% = 15/100
n= 1
t = 2
Substituting the values in the formula, we get:
A = 16000 (1 + 15 / 100) ^2
A = 16000 (23 / 20) ^2
A = 16000 * 23 * 23 / 400
A = 40 * 23 * 23
A = 21160
Amount at the end of 2 years = Rs. 21,160
Amount at the end of first year = Rs. 18,400
So interest for first year = Rs. 2400
Interest for second year = Rs. 2760
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