Question

Find the compound interest on Rs. 12500 for 2 years, if the rate of interest is 15% for the first year and 16% for the second year

Answer 1

1st year--
P=12500
R=15%
T=1year
Interest= P*R*T
1875+12500=14375
2nd year--
P=14375
R=16%
T=1year
Interest=2300
2300+14375=16675