Question

Find the amount and the compound interest on Rs. 4000 in 2 years, if the rate of interest for first year is 10% and for the second year is 15%.

Answer 1

Principal(P)=Rs. 4000
Rate($R_1$)=10% and ($R_2$)=15%
time(t)= 2 years
Amount=$P(1+\frac{R_1}{100})(1+\frac{R_2}{100})$
$=Rs.4000(1+\frac{10}{100})(1+\frac{15}{100})$
$=Rs.4000\times \frac{11}{10}\times \frac{23}{20}=Rs.5060$
C.I.= Amount-Principal
=Rs. 5060 -Rs. 4000=Rs. 1060