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Bank PO Prelims

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Banking And Insurance

Bank PO Prelims

Self Learning

6800 ₹2000 +
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Maths, English, Verbal Reasoning, Non Verbal Reasoning, Computers, Banking, Critical Reasoning, Verbal Ability, Vedic Maths

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Concept Detail
Maths / Comparing Quantities / Compound Interest Different Rates
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Compound Interest Different Rates

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

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

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

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

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

large Amount= Rs;4830


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