Question

Find the amount on Rs. $12,500$ for $2$ years compounded annually, the rate of interest being $15\%$ for the first year and $16\%$ for the second year.

• A. Rs. $16,500$
• B. Rs. $16,750$
• C. Rs. $16,675$
• D. None of these

Answer 1

Answer: (C)

Rs. $16,675$

Given, $P=$ Rs. $12500$,$R_1$ $=15\%$,$R_2$ $=16\%$

$A=p(1+\frac{R_1}{100})(1+\frac{R_2}{100})$
$A=12500\times (1+\frac{15}{100})\times (1\times \frac{16}{100})$
$=12500\times \frac{115}{200}\times \frac{116}{100}$
$=$ Rs. $16,675$