Question

find the amount and the compound interest on 6500 for 2 years compounded annually the rate of interest being 5%per annum during the first year and 6% per annum during the second year
​

Answer 1

Step-by-step explanation:

For first year

P=6500,R=5%, T=1

Interest =

100

PRT

=

100

(6500×5×1)

=325

Amount = Interest + Principle =325+6500=Rs.6825

For second year principle will be amount of previous year (since interest is compounded)

P=6825,R=6%, T=1

Interest =

100

PRT

=

100

(6825×6×1)

=Rs.409.5

Amount=P+I=6825+409.5=7234.5

Total interest =325+409.5=Rs.734.5

∴ Amount after 2 years will be Rs.7234.5 and interest Rs.734.5