The amount of Rs.10,000 after 2 years if the rates of compound interest are 3% and 4% for successive years is Rs.[[1]].

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Detailed Solution

Concept- The amount after 2 years will be 10712.
The basic formula of compound interest is

Where, A = final amount i.e., (principle + interest).
P = Principle on which interest in compounded
R = Rate of compound interest per annum
n = Time period of interest
As per the question, we will first calculate the amount on Rs.10,000 after 1 year at the rate of compound interest are 3% per annum and then use that amount as the principle for the 2nd year, on which, we will again calculate the amount at the rate of 4% compound interest per annum for 1 year.
Given, for 1st Year, P = Rs. 10000, R = 3%, n = 1 year, then,
Question Image

Therefore, for 2nd year, P = Rs. 10300, R = 4% and n = 1 year,
Now, amount after 2nd year =
Question Image

Hence, the correct answer is Rs. 10712.

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