Question 126

The amount on ₹ 25000 in 2 years at annually compound interest, if the rates for the successive years be 4% and 5% per annum respectively is:

Solution

Principal amount = Rs. 25,000 for 2 years

Interest for 1st year = 4% and for 2nd year = 5%

Amount after 2 years = $$25,000(1+\frac{4}{100})(1+\frac{5}{100})$$

= $$25,000(\frac{26}{25})(\frac{21}{20})$$

=> $$50\times26\times21=Rs.$$ $$27,300$$

=> Ans - (C)

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