Question

Find the amount and compound interest payable annually on Rs16000 for 2 years at 15% and
12% for the successive years​

Answer 1

Explanation

SOLUTION

For 1st year : P = Rs.16000, R = 15% and T = 1 year

∴ Interest = Rs.

16000×15×1/100

= Rs.2400

And, amount

= Rs.16000 + Rs.2400

= Rs.18400

For 2nd year : P = 18400, R = 12% and T = 1 year

∴ Interest = Rs.

18400×12×1/100

= Rs.2208

And, amount

= Rs.18400 + Rs.2208

= Rs.20608

∴ Required amount = Rs.20608

And, Compound Interest

= A - P

= Rs.20608 - Rs.16000

= Rs.4608.