Question

How much will 725.000 amount to in 2 years the rates for successive years be 4% per annum and 5 per annum respectively?​

Answer 1

Solution

Principal = $725.000 = $725

Time = 2years

R₁ = 4% p.a.

R₂ = 5%p.a.

$\bf{A = P\bigg(1 + \dfrac{R_1}{100}\bigg) \: \bigg(1+ \dfrac{R_2}{100}\bigg)} \:$

$\sf{=725 \bigg(1 + \dfrac{4}{100} \bigg) \bigg(1 + \dfrac{5}{100} \bigg)}$

$\sf{ = 725 \times \bigg( \dfrac{104}{100} \bigg) \bigg( \dfrac{105}{105} \bigg)}$

$\sf = {725 \times \dfrac{26}{25} \times \dfrac{21}{20}}$

$\sf{ = \dfrac{29 \times 13 \times 21}{10} = \dfrac{7917}{10}}$

$\bf{=\ 791.7} \:$

Therefore, amount is $791.7.