Multiple choice

Mr. Sharma bought a washing machine for Rs $4000$ on credit. The rate of interest for the first year is $5$% and for the second year is $15$%. How much will it cost him if he pays the amount after two years?

  1. Rs $4500$
  2. Rs $4830$
  3. Rs $5260$
  4. Rs $6400$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The amount after two years is calculated as 4000 * (1 + 0.05) * (1 + 0.15). This equals 4000 * 1.05 * 1.15 = 4200 * 1.15 = 4830.

AI explanation

Using the successive percentage change formula for two years, the total percentage increase is calculated as a + b + (a * b / 100). Substituting the interest rates of 5 percent and 15 percent gives a total change of 5 + 15 + (5 * 15 / 100), which equals 20.75 percent. The final cost is the principal plus this interest, calculated as 4000 * 1.2075, resulting in Rs. 4830.

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