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Find the compound interest on Rs. 6,500 for 4 years if the rate of interest is 10% p.a. for the first 2 years and 20% per annum for the next 2 years?

Correct Answer: Rs. 4826

Explanation:

We know the formula for calculating


The compound interest  C   =   P 1   +   r 100 n   -   1  where P = amount, r = rate of interest, n = time


Here P = 5000, r1 = 10, r2 = 20


Then  C   =   6500 1   +   10 100 2   x   1   +   20 100 2   -   1 =   6500   x   1856 2500 =   65   x   1856 25


C = Rs. 4826.


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