Question

Find the amount on ₹ 12500 for 2 years compounded annually , the rate of interest being 15% for the first year and 16% for the second year

Answer 1

A = P( 1 + R1÷100)(1 + R2÷100)(1 + R3÷100) .........

A = 12500( 1 + 15÷100)×(1 + 16÷100)

A = 12500( 115÷100)×(116÷100)

A = 12500( 1.15)×(1.16)

A = RS 16675  ANS

Answer 2

The required amount is  Rs.16675/-

Step-by-step explanation:

Given,

p = 12500

$R_1$ = 15 % P.a.

$R_2$ = 16 % p.a.

Amount after two year = $p\times \left( 1 + \frac{R_1 }{100} \right) \left( 1 + \frac {R_2}{100}\right)$

= $12500\times \left( 1 + \frac{15}{100} \right) \left( 1 + \frac{16}{100}\right)$

= $12500\times (1.15)\times (1.16)$

= Rs.16675/-

Thus ,

The required amount is  Rs.16675/-