Question

Find the amount of Rs $36,000$ after $2$ years, compounded annually, the rate of interest being $10$% for the first year and $12$% for the second year.

Answer 1

For the first year
$P=Rs36,000$
$N=1year$
$R=10$ %
We have $S.I.=\frac{PNR}{100}=\frac{36,000\times 1\times 10}{100}=Rs3,600$
And Amount at the end of first year $P+S.I.=Rs36,000+Rs3,600=Rs39,600$
Now, for the second year
$P=Rs39,600$
$N=1year$
$R=12$ %
We have $S.I.=\frac{PNR}{100}=\frac{39,600\times 1\times 12}{100}=Rs4,752$
And Amount at the end of second year $P+S.I.=Rs39,600+Rs4,752=Rs44,352$