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Find the amount and compound interest on ₹2500 for 2 years compounded annually, the rate of interest being 6% during the first year and 8% during the second year. |
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Answer» ution!! The CONCEPT of compound interest has to be used here. The principal, rate of interest and time is GIVEN. We have to FIND the compound interest. For 1st yearPrincipal (P) = Rs 2500 Time (T) = 1 year Rate of interest (R) = 6% Interest = (P × R × T)/100 Interest = (2500 × 6 × 1)/100 Interest = Rs 150 Amount = Principal + Interest Amount = Rs 2500 + Rs 150 Amount = Rs 2650 The amount in the 1st year is the principal of the 2ND year. For 2nd yearPrincipal (P) = Rs 2650 Time (T) = 1 year Rate of interest (R) = 8% Interest = (P × R × T)/100 Interest = (2650 × 8 × 1)/100 Interest = Rs 212 Amount = Principal + Interest Amount = Rs 2650 + Rs 212 Amount = Rs 2862 Compound interest = Rs 150 + Rs 212 Compound interest = Rs 362 |
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