Question

6. Calculate the amount and the compound interest on 5000 in 2 years when the rate of interest for successive years is 6% and 8% respectively
​

Answer 1

Step-by-step explanation:

1

st

year

Principal, P=Rs.5000

Time, T=1 year

Rate of interest ,R=6%

∴simple Interest, SI=

100

PTR

=

100

5000×10×6

=Rs.300

∴Amount=P+SI=Rs.5300

2nd year

Principal = Amount of 1st year=Rs.5300

Rate of interest =8%

Time =1 year

∴ Interest =

100

5300×1×8

=Rs.424

∴ Amount =Rs.(5300+424)=Rs.5724

The interest of 2nd year is the required compound interest. So, C.I=rs.424 and the required amount is Rs.5724