Compound Interest Practice Test 4

Question : 33 of 40

Marks: +1, -0

A principal of Rs 10,000 after 2 years compounded annually, with the rate of interest being 10% per annum during the first year and 12% per annum during the second year (in rupees) will amount to:

Rs 12,000
Rs 12,320
Rs 12,500
Rs 11,320

Validate

Solution:

P = Rs 10,000

r_1 = 10%

T = 1 year

A=10,000(1+10/100)^1

=10,000(110/100)=11,000

P = Rs 11,000

r_2 = 12%

T = 1 year

A=11,000(1+12/100)^1

=11,000×112/100=12,320

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