Find the amount and compound interest on RS 2500 in 2 years if the rates are 5% and 6% for successive years

Given:

P = Rs2500

R = 5% and 65

T = 2years

To find: Counpound in terest 

Solution 

A  =  P $(1 + \frac{R1}{100})  (1 + \frac{R2}{100})$

A  -  Amount

P  -  Principle                   

R  -  Rate of Interest

P  =  2500   ;   R₁  =  5 %    ;   R₂   =  6 %  

A  =  2500 $(1 + \frac{5}{100})  (1 + \frac{6}{100})$

A  =  2500 $(1 + \frac{1}{20})  (1 + \frac{3}{50})$

A  =  2500  $(\frac{21}{20})  (\frac{53}{50})$

A  =  $\frac{25 \times 21 \times 53}{2 \times 5}$

A  =  $\frac{5 \times 21 \times 53}{2}$

A   =  2782.50

Amount  =  2782.50₹

Compound Interest  =   $Amount  -  Principe$

Compound Interest  = $ 2782.50 - 2500 $ 

Compound Interest  =  282.50 ₹

Tutorialspoint

Simply Easy Learning

Updated on: 10-Oct-2022

232 Views

Kickstart Your Career

Get certified by completing the course

Get Started