Question

16. Find the amount of Rs.4000 for 3 years compounded annually, the rate of interest being 5% for the first 2 years and 10% for the next one year.
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Answer 1

Step-by-step explanation:

1. (4000x5) 2

-------------. =400 rs interest for 2 year

100

2. 400+4000,=4400

4400x10

--------------. = 440 rs interest for 3rd year

100

Answer 2

Answer:

4851

As there are two different rates at two different time periods the formula for compund interest changes as given in the solution