Question

find the amount of rs 50000 after 2 years compounded annually; the rate of interest being 8% p.a during the first year and 9% p.a during the second year. also find the compound interest

Answer 1

Step-by-step explanation:

hope it helps u

Answer 2

$Given \: Principal (P) = Rs\:50000$

$Rate \:of \: interest \: for \: first \:year (r_{1})$

$=8\% \: p.a\: --(1)$

$Rate \:of \: interest \: for \: Second \:year (r_{2})$

$=9\% \: p.a\: --(2)$

$Let \: the \: Amount \: after \: 2 \: years = A$

$A = P\Big( 1 + \frac{r_{1}}{100}\Big) \Big( 1 + \frac{r_{2}}{100}\Big)$

$\implies A = 50000 \Big( 1 + \frac{8}{100}\Big)\Big( 1 + \frac{9}{100}\Big)$

$\implies A = 50000 \Big( \frac{100+8}{100}\Big) \Big( \frac{100+9}{100}\Big)$

$= 50000 \times \frac{108}{100} \times \frac{109}{100}$

$= 5 \times 108 \times 109$

$\therefore A = Rs\: 58860$

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