Question

Find the compound interest on principal amount of rs 5000 after 2 years if rate of interest for 1st year is 2% and 2nd year is 4%

Answer 1

Answer:

The compound interest for 2 years is Rs 304

Explanation:

Given,

Principle= Rs 5,000

So, compound interest for 1st year

= P × R × T / 100

= Rs 5,000 × 2 × 1 /100

= Rs 100

New principle = Principal + Interest

                        = Rs 5,000 + Rs 100

                        = Rs 5,100

C.I. for 2nd year = Rs 5,000 × 4 × 1 /100

                           = Rs 204

Therefore, the total compound interest in 2 years = Rs 100+ Rs 204

                                                                                   = Rs 304

Answer 2

Answer: 304

guys this is the short approach to solve this question

Explanation:

R1 = 2% and R2 = 4%

So, Effective Rate = R1 + R2 + $\frac{R1 * R2 }{100}$

    2+4+$\frac{8}{100\\}$

      $\frac{152}{25}$

CI = $\frac{5000 * 152}{25 * 100}$

    304 ANS☺☺☺