What will be the amount due on ₹12,000 in 2 years when the rate of simple interest on successive years is 9% and 10%, respectively?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. ₹14,280.
We know,
SI = PRT/100
Where, SI = Simple interest, P = principal, R = rate, T = Time
According to the question;
⇒ SI = [(12000 × 9 × 1)/100] + [(12000 × 10 × 1)/100]
⇒ SI = 1080 + 1200 = 2280
Hence, amount = P + SI = 12000 + 2280 = 14280