The compound interest of Rs. 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, wi
Question
The compound interest of Rs. 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:
A.
Rs. 273
B.
Rs. 135
C.
Rs. 270
D.
Rs. 240
Correct option is A
Given:
Principal P = 6000
Rate of interest for the first year, R1=2.5%
Rate of interest for the second year, R2=2%
Time period = 2 years
Formula Used:
If compounding rate of interest is different for each year, then;
A=P×(1+100R1)×(1+100R2)
C.I = A - P
Where, A = Amount, P = Principal, C.I = Compound Interest.