Find the interest on ₹17500 for 2 years when the rate of interest compounded annually for the first year is 6%per annum and for the second year is 12% per annum.
To calculate the interest on ₹17500 for 2 years, compounded annually with different interest rates for each year, we can break it down into two separate calculations.
First, let's calculate the interest for the first year with a rate of 6% per annum:
Principal amount (P) = ₹17500
Rate of interest (R1) = 6%
Time (n1) = 1 year
Using the formula for compound interest:
Interest for the first year = P * (1 + (R1 / 100))^n1 - P
= 17500 * (1 + (6 / 100))^1 - 17500
= 17500 * (1 + 0.06) - 17500
= 17500 * 1.06 - 17500
= 17500 * 0.06
= ₹1050
Now, let's calculate the interest for the second year with a rate of 12% per annum:
Principal amount (P) = ₹18550 (Principal amount after the first year including the interest)
Rate of interest (R2) = 12%
Time (n2) = 1 year
Using the formula for compound interest:
Interest for the second year = P * (1 + (R2 / 100))^n2 - P
= 18550 * (1 + (12 / 100))^1 - 18550
= 18550 * (1 + 0.12) - 18550
= 18550 * 1.12 - 18550
= 20756 - 18550
= ₹2206
Therefore, the interest on ₹17500 for 2 years, with a compounded annual interest rate of 6% for the first year and 12% for the second year, would be ₹1050 (first year) + ₹2206 (second year) = ₹3256.
Therefore, the interest on ₹17500 for 2 years, with a compounded annual interest rate of 6% for the first year and 12% for the second year, would be ₹1050 (first year) + ₹2206 (second year) = ₹3256.
Answers & Comments
Answer:
To calculate the interest on ₹17500 for 2 years, compounded annually with different interest rates for each year, we can break it down into two separate calculations.
First, let's calculate the interest for the first year with a rate of 6% per annum:
Principal amount (P) = ₹17500
Rate of interest (R1) = 6%
Time (n1) = 1 year
Using the formula for compound interest:
Interest for the first year = P * (1 + (R1 / 100))^n1 - P
= 17500 * (1 + (6 / 100))^1 - 17500
= 17500 * (1 + 0.06) - 17500
= 17500 * 1.06 - 17500
= 17500 * 0.06
= ₹1050
Now, let's calculate the interest for the second year with a rate of 12% per annum:
Principal amount (P) = ₹18550 (Principal amount after the first year including the interest)
Rate of interest (R2) = 12%
Time (n2) = 1 year
Using the formula for compound interest:
Interest for the second year = P * (1 + (R2 / 100))^n2 - P
= 18550 * (1 + (12 / 100))^1 - 18550
= 18550 * (1 + 0.12) - 18550
= 18550 * 1.12 - 18550
= 20756 - 18550
= ₹2206
Therefore, the interest on ₹17500 for 2 years, with a compounded annual interest rate of 6% for the first year and 12% for the second year, would be ₹1050 (first year) + ₹2206 (second year) = ₹3256.
Hope that helps!
Answer:
Therefore, the interest on ₹17500 for 2 years, with a compounded annual interest rate of 6% for the first year and 12% for the second year, would be ₹1050 (first year) + ₹2206 (second year) = ₹3256.