Question

calculate the amount and the compound interest on 10,600 in 2 years when the rates of interest for successive years are 8% and 10% respectively​

Answer 1

Answer: A=12592.80,CI=1992.80

Step-by-step explanation:

Given,

P=10600

$r_{1}$=8% p.a.

$r_{2}$=10% p.a.

n=2 years

To find:Amount and Compound Interest

Solution:

A=P(1+$\frac{r_{1} }{100}$) (1+$\frac{r_{2} }{100}$)

A=10600(1+$\frac{8}{100}$) (1+$\frac{10}{100}$)

A=10600(1+0.08) (1+0.1)

A=10600(1.08) (1.1)

A=10600(1.188)

A=12592.80

CI=A-P

CI=12592.80-10600

CI=1992.80