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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%R_1 = 2.5\%​​
Rate of interest for the second year, R2=2%R_2 = 2\%​​
Time period = 2 years
Formula Used:
If compounding rate of interest is different for each year, then;
A=P×(1+R1100​​)×(1+R2100​​)A​= P× \left(1+\frac{R_1}{100}​​\right) \times\left(1+\frac{R_2}{100}​​\right)​​
C.I = A - P
Where, A = Amount, P = Principal, C.I = Compound Interest. 
Solution: 
Putting the values in the formula;
A=6000×(1+2.5100​​)×(1+2100​​) A=6000×(10251000​​)×(102100​​) =6273A​= 6000× \left(1+\frac{2.5}{100}​​\right) \times\left(1+\frac{2}{100}​​\right) \\ \ \\ A​= {6\cancel{000}}× \left(\frac{1025}{1\cancel{000}}​​\right) \times\left(\frac{102}{100}​​\right) \\ \ \\ = 6273 
Thus,  Compound Interest = 6273 - 6000 = Rs. 273 

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