Question

Find the amount and the compound interest on ₹2000 in 2 years if the rate is 4% for the first year and 3% for the second year .​

Answer 1

Solution!!

The concept of compound interest has to be used here. The principal and time is given. The rate of interest is different for the first year and for the second year. We have to find the amount and the compound interest.

For 1st year

• Principal (P) = Rs 2000

• Rate of interest (R) = 4%

• Time (T) = 1 year

• Interest = (P × R × T)/100

→ Interest = (2000 × 4 × 1)/100

→ Interest = 20 × 4 × 1

• Interest = Rs 80

• Amount = Principal + Interest

→ Amount = Rs 2000 + Rs 80

• Amount = Rs 2080

For 2nd year

The amount in the 1st year will be the principal in the 2nd year.

• Principal (P) = Rs 2080

• Rate of interest (R) = 3%

• Time (T) = 1 year

• Interest = (P × R × T)/100

→ Interest = (2080 × 3 × 1)/100

→ Interest = 6240/100

• Interest = Rs 62.4

• Amount = Principal + Interest

→ Amount = Rs 2080 + Rs 62.4

=> Amount = Rs 2142.4

• CI = Amount - Principal

→ CI = Rs 2142.4 - Rs 2000

=> CI = Rs 142.4

Hence, the amount and the compound interest is Rs 2142.4 and Rs 142.4, respectively.

Answer 2

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Interest for 1st year = 2000×4×1/100

=₹80

Amount = 2000+80=2080

Interest for 2nd year = 2080×3×1/100

=₹62.4

Amount = 2080+62.4=2142.4

Compound interest = 2142.4-2000

=₹142.4

Amount=₹2142.4

Compound interest=₹142.4

Hope it will helps you...✌️