Calculate the amount and compound interest on 16,000 for 2 years compounded annually, the rate of interest being 9% per annum in 1st year and 10% per annum in 2nd year. estion 2:
Answers
Answered by
3
Answer:
Principal = Rs. 16000
Time = 2 years
Rate = 10%
Formula
Amount = P(1 + R/100)T
Calculation
Amount = 16000(1 + 10/100)2
⇒ Amount = 16000 × (11/10)2
⇒ Amount = 19,360
∴ Compound interest = Amount - Principal = 19360 - 16000 = Rs. 3360.
Smart Trick
Effective rate = x + y + (xy/100) = 10 + 10 + (10 × 10)/100 = 21%
∴ Compound interest = 16000 × (21/100) = 3360.
Similar questions