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:

Options

A. `Rs. 30,000 `
B. `Rs. 26,800 `
C. `Rs.27,300 `
D. `Rs. 28.500`

Answer

To find the amount on Rs. 25,000 in 2 years at annual compound interest with rates of 4% and 5% for the successive years, we can follow these steps:

### Step-by-Step Solution:

1. **Identify the Principal and Rates**:
- Principal (P) = Rs. 25,000
- Rate for Year 1 (R1) = 4%
- Rate for Year 2 (R2) = 5%

2. **Calculate the Amount after Year 1**:
- The formula for the amount after one year at compound interest is:
\[ A_1 = P \times \left(1 + \frac{R1}{100}\right) \]
- Substitute the values:
\[ A_1 = 25000 \times \left(1 + \frac{4}{100}\right) = 25000 \times \left(1 + 0.04\right) = 25000 \times 1.04 = 26000 \]

3. **Calculate the Amount after Year 2**:
- Now, use the amount from Year 1 as the principal for Year 2:
\[ A_2 = A_1 \times \left(1 + \frac{R2}{100}\right) \]
- Substitute the values:
\[ A_2 = 26000 \times \left(1 + \frac{5}{100}\right) = 26000 \times \left(1 + 0.05\right) = 26000 \times 1.05 = 27300 \]

4. **Final Amount**:
- The final amount after 2 years is Rs. 27,300.

### Final Answer:
The amount on Rs. 25,000 in 2 years at annual compound interest with rates of 4% and 5% is **Rs. 27,300**.

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