Question

13. Calculate the amount due and the compound
interest on 40000 for 2 years when the rate
of interest successive years is 7% and 8%
respectively.​

Answer 1

solution:-

amount at the end of first year

= 40000+40000×7 / 100

= 42800

amount at the end of second year

= 42800+42800×8/100

= 42800+ 3424

= 46224

this is the amount due

and the amount of interest

= A-P

=46224-40000

= 6224