A principal of Rs. 15,000, after 2 years compounded annually, the rate of interest being 10% per annum during the first year and 12% per annum during the second year (in rupees) will amount to:
- AOption (a)
18,000
- BOption (b)
18,480
- COption (c)
18,500
- DOption (d)
18,320
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Correct answer
18,480
Why this answer is correct
We know that, for a year
SI = CI = pr/100
Where, p = principal, r = % rate of interest per annum
Amount after first year \(= ;15000 + \frac{{15000; \times ;10;}}{{100}}\) = Rs. 16500
Amount After second year \(= ;16500; + ;\frac{{16500; \times ;12; }}{{100}}\)
= Rs. (16500 + 1980)
= Rs. 18480