Multiple choice

What is CI on INR $7500$ for $4$ years if the rate of interest is $10\%$ p.a. For the first $2$ years and $20\%$p.a. for the next $2$ years?

  1. INR $5273$
  2. INR $5568$
  3. INR $5554.8$
  4. INR $5325$
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C Correct answer
AI explanation

Using the successive compound interest formula for different rates, the final amount equals 7500 multiplied by 1.10 squared, and then multiplied by 1.20 squared. This calculates to 7500 times 1.21 times 1.44, which equals INR 13054.8. Subtracting the original principal of 7500 gives a compound interest of INR 5554.8.

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