Find the amount of Rs. 12500 for 2 years compounded annually, the rate of interest being 15% for the first year and 16% for the second year.

xhl62d5k

xhl62d5k

Answered question

2023-02-15

Find the amount of Rs. 12500 for 2 years compounded annually, the rate of interest being 15% for the first year and 16% for the second year.

Answer & Explanation

levaretzf35

levaretzf35

Beginner2023-02-16Added 8 answers

Principal (P) = Rs. 12500
Rate (R_1)=15% p.a for first year.
R_2=16% p.a for second year
Period = 2 years.
= P ( 1 + R 1 100 ) ( 1 + R 2 100 ) = R s .12500 ( 1 + 15 100 ) ( 1 + 16 100 ) = R s .12500 × 115 100 × 116 100 = R s .16675

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