Question

A man borrowed ₹1,40,000 from a bank for 2 years interest compounded annually, the rate of Interest being 8% for the first year and 8.5% for the second year. Find the amount and the compound interest payable after the end of the second year.

Answer 1

Refer the attachment!!!

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Answer 2

Answer:

Therefore, amount for the second year is 1,64,052.

Step-by-step explanation:

Principal = 1,40,000

Total time = 2 years

Rate for first year is 8%

Rate for second year 8.5%

For the first year when r is 8%

$CI = P[(1 + i)^n-1]$

$CI = 1,40,000[(1 + 0.08)^1-1]$

$CI = 1,40,000[(1.08)^1-1]$

CI = 1,40,000 × 0.08

CI = 11,200

Intrest for the first year 23,296

Amt = principle + CI

Amt = 1,40,000 + 11,200

Amt = 1,51,200

For the first year when r is 8.5%

$CI = P[(1 + i)^n-1]$

$CI = 1,51,200[(1 + 0.085)^1-1]$

$CI = 1,51,200[(1.085)^1-1]$

CI = 12,852

Intrest for the first year 12,852

Amt = principle + CI

Amt = 1,51,200 + 12,852

Amt = 1,64,052

Therefore, amount for the second year is 1,64,052.