Question

Calculate the amount and compound interest on 16000 for 2years compounded annually the rate of interest being 9% per annum in first year and 10% per annum in second year

Answer 1

Principal (p1) = 16000

Time (t) = 2 years

Rate in 1st year (r1) = 9%

Rate in 2nd year (r2)= 10%

C.I1 in 1st year:

(p1*r1*1)/100

= (16000*9*1)/100

= 1440

Amount in 1st year = p1 + C.I1

= 16000 + 1440

= 17440

principal(p2) in 2nd year is equal to amount in 1st year

=> p2 = 17440

C.I (C.I2)in 2nd year:

= (p2*r2*1)/100

= (17440*10)/100

= 1744

Amount = p2+C.I2

= 17440+1744

= 19184

Total C.I = C.I1+C.I2

= 1440+1744

= 3184

Answer:

Amount = 19184

C.I = 3184