Question

What is the compound interest on rs 5000 for 4 years if the rate of interest is 10% p.A. For the first 2 years and 20% p.A. For the next 2 years?

Answer 1

Given:

Principal, P = Rs. 5000

Time period, n = 4 years

The rate of interest for the first 2 years = 10% p.a.

The rate of interest for the next 2 years = 20% p.a.

To find:

The compound interest

Solution:

The formula to find the amount and the compound interest is as follows:

$\boxed{\bold{Amount, A = P [1+ \frac{R}{100} ]^n}}\\\\\boxed{\bold{C.I. = Amount - Principal}}$

Therefore, substituting P = 5000, R for first 2 years = 10% & R for next 2 years = 20% in the first formula,

$A = 5000 \times [1 + \frac{10}{100} ]^2 [1+ \frac{20}{100} ]^2$

$\implies A = 5000 \times [ \frac{110}{100} ]^2 \times [ \frac{120}{100} ]^2$

$\implies A = 5000 \times [1.1 ]^2 \times [ 1.2 ]^2$

$\implies A = 5000 \times 1.21 \times 1.44$

$\implies A = \bold{Rs. \:8712}$

Now, substituting the value of A in the second formula,

C.I. = $Rs.\: 8712 - Rs.\:5000 = \bold{Rs. 3712}$

Thus, the compound interest is Rs. 3712.

---------------------------------------------------------------------------------------

Also View:

Find the compound interest on RS 5000 at 12% p.a. for 1 year, compounded half yearly.

https://brainly.in/question/16398171

What will Rs.80,000 amount to in 2 years at the rate of 20% p.a., if interest is compounded half yearly?

https://brainly.in/question/12159582

Find the compound interest on rs 4000 for 2.5 years at 10% per annum?

https://brainly.in/question/5836239

Answer 2

Answer:

Thus, the compound interest is Rs. 3712.