Question

Find the amount and the compounded interest on $₹ 3600$ for 2 years compounded annually, the rates of interest are $8 \%$ during the first year and $10 \%$ during the second year.

• A. $A =4276.80$, C.I. $=676.80$
• B. $A =5246.40$, C.I. $=494.20$
• C. $A =4822$, C.I. $=786.80$
• D. $A =4788.80$, C.I. $=624.60$

Answer 1

Answer: (A)

$P=₹ 3600$
$T=2$ years
$R=8 \%$ pa and $10 \%$ pa
Amount after first year
$A_1 =P\left(1+\frac{R}{100}\right)=3600\left(1+\frac{8}{100}\right)$
$ =36 \times 108 $
$ =₹ 3888$
Amount after $2^{\text {nd }}$ year
$A_2 =A_1\left(1+\frac{R}{100}\right)=3888\left(1+\frac{10}{100}\right)=3888\left(\frac{11}{100}\right)$
$ =₹ 4276.80$
$\therefore$ Amount at the end of second year $=₹ 4276.80$ and the interest $=4276.80-3600=₹ 676.80$