1.

The amount of 10000 after 2 years compound annually with the rate of interest being 10 %per annum during the first year and 12%per annum during the second year would be

Answer»

Ok, let us start with 10% in the first year.

Final Amount after 1 year

= 10000 + 10000 * 10/100

= 10000 + 1000

= 11000

So, the return after 1 year will be 11000.


Now 2ND year, final amount will be,

= 11000 + 11000 * 12/100

= 11000 + 110 * 12

= 11000 + 1320

= 12,320


So, your final return after 2 years will be 12,320.


Hope it helps you!

Still have any doubts, feel free to ASK me.



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