Question:
Find the amount of Rs 10000 after 2 years compounded annually; the rate of interest being 10% per annum during the first year and 12% per annum during the second year. Also, find the compound interest.
Solution:
Here, $A=P \times\left(1+\frac{p}{100}\right) \times\left(1+\frac{r}{100}\right)$
$=$ Rs. $10000 \times\left(1+\frac{10}{100}\right) \times\left(1+\frac{12}{100}\right)$
$=$ Rs. $10000 \times\left(\frac{110}{100}\right) \times\left(\frac{112}{100}\right)$
$=$ Rs. $10000 \times\left(\frac{11}{10}\right) \times\left(\frac{28}{25}\right)$
$=$ Rs. $(40 \times 11 \times 28)$
$=$ Rs. 12320
$\therefore$ CI $=A-P=$ Rs $(12320-10000)=$ Rs. 2320
Hence, the amount is Rs 12320 and the CI is Rs 2320 .