Course / Category - Bank PO Prelims

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Bank PO Prelims

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Banking And Insurance

Bank PO Prelims

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SUBJECTS

Maths, English, Verbal Reasoning, Non Verbal Reasoning, Computers, Banking, Critical Reasoning, Verbal Ability, Vedic Maths

Concept Detail
Maths / Comparing Quantities / Compound Interest Different Rates
(A Brief Glimpse of ABHYAS Content - Have aLook !!!!)

# Compound Interest Different Rates

Calculation of Compound Interest when Interest is Compounded Annually but Rates being Different for Different Years:

$\dpi{100} \large Let \;the \;principal\; be\; P and \;rates\; being \;R_1,\;R_2,\;R_3,\;R_4\; for\;different\;years$

$Amount = P\; \left [ 1+\frac{R_1}{100} \right ]\;\times \left [ 1+\frac{R_2}{100} \right ]\;\times \left [ 1+\frac{R_3}{100} \right ]$

Illustration: Find the amount after two years compounded annually when rate of interest for first year is 5% and 15% for the next year when the principal is Rs. 4000.

Solution:   $\dpi{100} \large Amount = P\; \left [ 1+\frac{R_1}{100} \right ]\;\times \left [ 1+\frac{R_2}{100} \right ]\;$

$\dpi{100} \large Amount = 4000\; \left [ 1+\frac{5}{100} \right ]\;\times \left [ 1+\frac{15}{100} \right ]$

$\dpi{100} \large Amount = 4000\; \left [ 1+\frac{1}{20} \right ]\;\times \left [ 1+\frac{3}{20} \right ]$

$\dpi{100} \large Amount = 4000\; \left [ \frac{21}{20} \right ]\;\times \left [ \frac{23}{20} \right ]$

$\dpi{100} \large Amount= Rs\;4830$

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