Question

Find the amount of Rs 10000 after 2 years compounded annually; the rate of interest being 10% per annum during the first year and 12% per annum during the second year. Also, find the compound interest.

Answer 1

$$\begin{gathered} \mathrm{Here},A\mathit{}=P\times \left(1+\frac{p}{100}\right)\times \left(1+\frac{r}{100}\right) \\ =\mathrm{Rs}.10000\times \left(1+\frac{10}{100}\right)\times \left(1+\frac{12}{100}\right) \\ =\mathrm{Rs}.10000\times \left(\frac{110}{100}\right)\times \left(\frac{112}{100}\right) \\ =\mathrm{Rs}.10000\times \left(\frac{11}{10}\right)\times \left(\frac{28}{25}\right) \\ =\mathrm{Rs}.\left(40\times 11\times 28\right) \\ =\mathrm{Rs}.12320 \\ \therefore \mathrm{CI}=A-P=\mathrm{Rs}(12320-10000)=\mathrm{Rs}.2320 \\ \mathrm{Hence},\mathrm{the}\mathrm{amount}\mathrm{is}\mathrm{Rs}12320\mathrm{and}\mathrm{the}\mathrm{CI}\mathrm{is}\mathrm{Rs}2320. \end{gathered}$$