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

Answer:

A1 = 1.04 * A0     where A1 is the amount after 1 year

A2 = 1.03 * A1 = 1.03 * 1.04 * A0       where is amount after 2 years

A2 = 2000 * 1.03 * 1.04 = 2142.4     compounded amount

A2 = A0 (1 + i)^2        where i would be the effective compound interest

(1 + i)^2 = 2142.4 / 2000 = 1.0712

1 + i = 1.035  

So i = 3.5 %

Answer 2

Answer:

see the attachment

Step-by-step explanation:

hope it helps you