Q.

Calculate the amount and compound interest on Rs. 5000 in two years when the rate for interest for successive years is 6% and 8% respectively.


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a

5300 and 5724

b

5500 and 5800

c

5600 and 5824

d

5824 and 5998 

answer is A.

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Detailed Solution

Given,
Principal, P=Rs.5000
Rate of interest, R = 6%, 8%
Time, T = 2 year
First year
We know that,
 Simple Interest, SI=PTR100
=5000×10×6100
= Rs. 300
So, amount
A=P+SI
A=Rs.5300
For, second year
Principal = 1st year amount= Rs.5300
So, rate of interest r= 8%
Time t= 1 year
So, the value of Interest
SI=5300×1×8100
= Rs. 424
Now the Amount value
A= Rs. 5300+424
A= Rs. 5724
So, amount is Rs 5724 and compound interest is Rs 424.
Correct option is 1.
  
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