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If the rate of compound interest for the first and second year are 5% and 6% respectively, then find the compound interest on Rs. 5000 for 2 years. |
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Answer» The principal at the beginning `=Rs. 5000` The rate fo the compound interest `=5%` period of time `=1` year `:.` Amount after first year `=Rs. 5000(1+5/100)` ltbr. `=Rs. 5000(1+1/20)=Rs. 5000xx21/20=Rs. 5250` `:.` Principal at the end of the second year `=Rs. 5250` The rate of compound interest `=6%` Period of time `=1` year `:.` The amount after second year `=Rs. 5250 (1+6/100)` `=Rs. 5250xx106/100=Rs. 5565` `:.` Compound interest `=Rs.(5565-5000)` `=Rs. 565` `:.` The required compound interest of Rs. 5000 for 2 years is Rs. 565. |
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