What will be the Compound Interest? If

Find the compound interest for a sum of ` 9875 in 2 years, if the rate of interest for the first year is 6% and for the second year is 8%:

  1. 1426.9
  2. 1399.9
  3. 1639.9
  4. None of these
Desire Adnan Default Asked on 8th August 2015 in Maths.
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  • 2 Answer(s)

    Answer: (4)  None of these
    Explanation:-
    Given- 
    principal = Rs.9875,  Time = 2 ears ,   Rate of interest for the first year = 6 %
    & Rate of interest for second year = 8 %.

    Formula-
    Simple Interest = P x R x T/100
    Where, P = principal , R = rate, & T = time.

    Interest for first years = 9875 x 1 x 6 /100
    = Rs.592.50

    Interest for second year = (9875 + 592.5) x 1 x 8/100
    = 10467.50 x 8 x 1/100
    = Rs. 837.40

    Then, Total compound interest =  592.50 + 837.40
    = Rs.  1429.9

    Hence, the simple interest = Rs. 1429.9.

    Anurag Mishra Professor Answered on 9th August 2015.
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    KumarDilip Newbie Answered on 9th August 2015.
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