Find the amount on Rs.5000 in 2 years, the rate of interest being 4% per first year and 5% for the second year?
Correct answer: C. Rs.5460
- A. Rs.460
- B. Rs.5640
- C. Rs.5460
- D. Rs.5604
Explanation
The first year's balance is Rs. 5,000 x 1.04 = Rs. 5,200. Applying the second year's 5% rate gives Rs. 5,200 x 1.05 = Rs. 5,460, so option c is correct. Option d, Rs. 5,604, incorrectly adds both percentage increases directly to the original amount.
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Percentages express a quantity as parts per hundred and support calculations involving increases, decreases, discounts, commissions, taxes, and successive changes. Questions require distinguishing percentage change from percentage points and identifying the original value when a final value and its percentage change are given.
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