Calculate the total amount after 2 years on a principal of Rs. 5000, given the interest rate is 4% for the first year and 5% for the second year.

Choose the correct answer

Explanation

The correct amount after 2 years is Rs. 5460. This is found by applying 4% interest on Rs. 5000 for the first year, resulting in Rs. 5200, and then applying 5% interest on Rs. 5200 for the second year, which totals Rs. 5460.

Calculate the total amount after 2 years on a princi… — Compound Interest | PakQuizHub