Question

• The compound interest is earned on a sum of money at a rate of 8% p.a. for the first year and 10% p.a. for the
second year. Then find the single equivalent rate of interest on the sum for the two years.​

Answer 1

Answer:

I=ptr/100

I=p8/100

i1=p108*10/10000

A=p+p8/100+p108/1000

A=1188p/1000

i2=A-p=1188p/1000-p=188p/1000

i2=p2*r/100

188p/1000=2pr/100

r=188/20=9.4