when the interest is compounded annually but rates are different for different years
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Here, P = $ 4000, R1 = 5% p.a and R2 = 15% p.a.
∴ Amount after 2 years = P( 1 + R1)( 1 + R2)
= 4,000 x ( 1 + 0.05) ( 1 + 0.15)
= 4000 x ( 1.05) ( 1.15 )
= 4000 x 1.2075
= $ 4830
∴ The refrigerator will cost $ 4830 to Roger.
please please mark as brilliant.
∴ Amount after 2 years = P( 1 + R1)( 1 + R2)
= 4,000 x ( 1 + 0.05) ( 1 + 0.15)
= 4000 x ( 1.05) ( 1.15 )
= 4000 x 1.2075
= $ 4830
∴ The refrigerator will cost $ 4830 to Roger.
please please mark as brilliant.
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