4. How much will $20,000 amount to in 2 yearsat CI if the rates for su

1.	4. How much will $20,000 amount to in 2 yearsat CI if the rates for successive years are 8%and 10% p.a. respectively?
Answer» Given :- Principal = $20,000 Time = 2 years Rate for the first year = 8% Rate for the SECOND year = 10% To Find :- The compound INTEREST Solution :- For the first year :- Principal = $20,000 Time = 1 year Rate = 8% $Interest\: =\: {\dfrac{P \times R \times T}{100}}$ On inserting the values in the formula We get , $Interest\: =\: {\dfrac{20000 \times 8 \times 1}{100}}$ $\implies\: Interest\: =\: {\dfrac{\cancel{20000}^{200}\: \times 8 \times 1}{\cancel{100}^{1}}}$ $\implies\: Interest\: =\: \bold{1600}$ AMOUNT = Principal + Interest = $ 20,000 + $ 1,600 = $ 21,600 For the second year :- Principal = $ 21,600 Time = 1 year Rate = 10% $Interest\: =\: {\dfrac{P \times R \times T}{100}}$ On inserting the values in the formula On inserting the values in the formulaWe get , $\implies\: Interest\: =\: {\dfrac{21600 \times 10 \times 1}{100}}$ $\implies\: Interest\: =\: \bold{2160}$ Amount = Principal + Interest = $ 21,600 + $ 2,160 = $ 23,760 Compound Interest = Final Amount - Original Principal = $ 23,760 - 20,000 = $ 3,760 Therefore, compound interest is $ 3,760

4. How much will $20,000 amount to in 2 yearsat CI if the rates for successive years are 8%and 10% p.a. respectively?

Answer»

Given :-

Principal = $20,000

Time = 2 years

Rate for the first year = 8%

Rate for the SECOND year = 10%

To Find :-

The compound INTEREST

Solution :-

For the first year :-

Principal = $20,000

Time = 1 year

Rate = 8%

$Interest\: =\: {\dfrac{P \times R \times T}{100}}$

On inserting the values in the formula

We get ,

$Interest\: =\: {\dfrac{20000 \times 8 \times 1}{100}}$

$\implies\: Interest\: =\: {\dfrac{\cancel{20000}^{200}\: \times 8 \times 1}{\cancel{100}^{1}}}$

$\implies\: Interest\: =\: \bold{1600}$

AMOUNT = Principal + Interest

= $ 20,000 + $ 1,600

= $ 21,600

For the second year :-

Principal = $ 21,600

Time = 1 year

Rate = 10%

$Interest\: =\: {\dfrac{P \times R \times T}{100}}$

On inserting the values in the formula

On inserting the values in the formulaWe get ,

$\implies\: Interest\: =\: {\dfrac{21600 \times 10 \times 1}{100}}$

$\implies\: Interest\: =\: \bold{2160}$

Amount = Principal + Interest

= $ 21,600 + $ 2,160

= $ 23,760

Compound Interest = Final Amount - Original Principal

= $ 23,760 - 20,000

= $ 3,760