Q.If the annual interest rates for ₹8000 in the first and second years are 9% and 10% respectively, then the amount after 2 years including interest will be – (a) ₹ 9295 (b) ₹9952 (c) ₹ 9259 (d) ₹ 9592
Answer: D
Principal \((p) = ₹8000\) First year's interest rate \((r_1) = 9\%\) Second year's interest rate \((r_2) = 10\%\) Time \((n) = 2\) years \(\therefore\) Amount after 2 years with compound interest: \(= 8000(1 + \cfrac{9}{100})(1 + \cfrac{10}{100})\) \(= 8000 \times \cfrac{109}{100} \times \cfrac{110}{100}\) \(= ₹9592\) \(\therefore\) After 2 years, the total amount including interest will be ₹9592.
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