The compound interest of ₹6,000 in two years, if the rate of interest is 2.5% per annum for the first year and 2% per annum for the second year, will be:
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹273.
Given that
Principal (P) = ₹6,000
Time (T) = 2 years
Rate of interest (R) = 2.5% p.a. for 1st year, 2% p.a. for 2nd year
Formula used
Amount = P (1 + R/100)T
C.I. = Amount - P
Calculation
Amount after 2 years = 6000 × (1 + 2.5/100) × (1 + 2/100) = ₹6273
Hence, C.I. = 6273 - 6000 = ₹273