Question

5
1 What will be compound interest on 18.750 for 2 years when the rate of interest is 4% for the first year a
8% for the second year?​

Answer 1

Answer:

₹ 2.31

As we know,

C.I =    P₁ ( 1 + R/100 )ⁿ - P₁

Given:

rate for first year = 4%

rate for second year = 8%

Step-by-step explanation:

here we have given different values for both year, so we'll solve it in this way -

P₁ ( 1 + R₁/100 )( 1 + R₂/100 ) - P₁

Solution:

   P₁ ( 1 + R₁/100 )( 1 + R₂/100 ) - P₁

⇒ 18.750 ( 1+4/100) (1+8/100) - 18.750

⇒ 18.750 ( 100+4/100) ( 100+8/100 ) - 18.750

⇒ 1875 × 104 ×  108 / 1000000 - 18.75

⇒ 21.06 - 18.75

→  ₹ 2.31