The amount on Rs. 25,000 in 2 years at annual compound interest,

The amount on Rs. 25,000 in 2 years at annual compound interest, if the rates for the successive years be 4% and 5% per annum respectively is :

Given that , Principal = Rs. 25,000 , Time = 2 years , R₁ = 4% , R₂ = 5%
Using the given formula ,

Amount = P		1 +	R₁			1 +	R₂
			100				100

Amount = 25000		1 +	4			1 +	5
			100				100

Amount = 25000 ×	104	×	105
	100		100

Amount = Rs. 27300