A sum of ₹10,500 deposited 2 years ago, compounded annually, with the rate of interest 10% per annum during the first year, and 12% per annum during the second year, will amount to ________.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. Rs. 12,936
For 1st year -
Principal = 10500
Rate = 10%
Amount = Principal[1 + Rate/100]Time
Amount after 1st year = 10500[1 + 10/100]1 = 10500(11/10) = 11550
For 2nd year -
Principal = 11550
Rate = 12%
Amount after 2nd year = 11550[1 + 12/100]1 = 11550(28/25) = Rs. 12936