How much will 25000 amount to in 2 years at compound interest if the rate for the successive years before and 5% per year?

Correct Option: C

Given that , Principal = Rs. 25,000 , Time = 2 years , R1 = 4% , R2 = 5%
Using the given formula ,

Amount = P		1 +	R1			1 +	R2
100	100

Amount = 25000		1 +	4			1 +	5
100	100

Amount = Rs. 27300

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Updated On: 27-06-2022

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Text Solution

Solution : Amount`=P(1+r/100)^t`<br> Amount`=25000(1+4/100)^1`<br> After 2 years <br> Amount`=25000(1+4/100)(1+5/100)`<br> `A=27300`<br> option c is correct.

Answer

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