Question

calculate the amount and the compound interest on 25000 in 2 years when the rate of interest for successive years is 6% and 8 % respectively.​

Answer 1

amount after one year

p=25000

r= 6%

n= 1

A = p(1+r)ⁿ

= 25000(1+6%)¹ = 25000×1.06

= 26500

This is the new principal for next year

p = 26500

r=8%

n=1

A = 26500(1+8%)¹ = 28620