Question

Example 4 What sum of mondy at compound
interest will amount to 5400 in 2 yrs. if the
rate of interest in 4% for the Ist year, and 6%
for the 2nd year?
(a) *4950.00
(b) 4889.40
(c) 5000.00
(d) None of these​

Answer 1

Answer:

5400 =PxIO4/100x106/100

p=5400x100x100/104x106=

= 4898.40(b)