Question

what is the compound interest on rs 5000 in 2 years if the rate of interest for successive years be 10% and 12% respectively
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Answer 1

Answer:

rs 1160

Step-by-step explanation:

For 1st year

Principal (P) = Rs. 5,000

Rate (R) = 10%

Time (T) = 1 Year

∴ Interest = (5,000 × 10 × 1)/100 = 50 × 10 = Rs. 500

∴ Amount at the end of 1ST year = Rs. (5000 + 500) = Rs. 5500

For 2nd year

P = Rs. 5550

Rate 12%

T = 1 year

∴ Interest = (5500 × 12 × 1)/100 = 55 × 12 = Rs. 660

∴ Amount at the end of 2nd year

= Rs. 5500 + Rs. 660 = Rs. 6160

Hence compound interest = Rs. 6160 – Rs. 5000

= Rs. 1160

Answer 2

$\sf{Given\::-}$

$\rm\green{Compound\:Interest\::-}$ $\rm{Rs.\: 5000}$

$\rm\green{Time\:Period\::-}$ $\rm{2 \:Years}$

$\rm\green{Rate\::-}$ $\rm{10\:\% \:, \:12\:\%}$

Formula Used :

For any two different rates of two different years , the concept used ↓

${\underline{\boxed{\sf{p \times \bigg(1 + \frac{r}{100}\bigg)\:\bigg(1 + \frac{r}{100}\bigg) }}}}$

$\sf{Solution\::-}$

$:\implies\sf{5000 \times \bigg(1 + \frac{10}{100}\bigg)\:\bigg(1 + \frac{112}{100}\bigg)}$

$:\implies\sf{5000 \times \frac{110}{100} \times \frac{112}{100}}$

$:\implies\sf{5\cancel{000} \times \frac{11\cancel0}{1\cancel{00}} \times \frac{112}{1\cancel{00}}}$

$:\implies\sf{5 \times 11 \times 112}$

$:\implies\sf{6160}$

$\rm\green{The\:Compound\:Interest\::-}$ $\sf{6160 - 5000 = 1160\:rs}$