Ram Singh bought a refrigerator for Rs 4000 on credit. The rate of interest for the first year is 5% and of the second years is 15%. How much will it cost him if he pays the amount after two years.

Answer

To solve the problem step by step, we will calculate the total cost of the refrigerator after two years, including the interest for each year.

### Step 1: Calculate the interest for the first year.
- **Principal (P)**: Rs 4000
- **Rate of interest (R)**: 5%
- **Time (T)**: 1 year

Using the formula for simple interest:
\[ \text{Interest} = \frac{P \times R \times T}{100} \]
Substituting the values:
\[ \text{Interest} = \frac{4000 \times 5 \times 1}{100} = \frac{20000}{100} = 200 \]

### Step 2: Calculate the total amount after the first year.
- **Total Amount after 1 year** = Principal + Interest
\[ \text{Total Amount} = 4000 + 200 = 4200 \]

### Step 3: Calculate the interest for the second year.
- **Principal for the second year**: Rs 4200 (the amount after the first year)
- **Rate of interest (R)**: 15%
- **Time (T)**: 1 year

Using the simple interest formula again:
\[ \text{Interest} = \frac{4200 \times 15 \times 1}{100} = \frac{63000}{100} = 630 \]

### Step 4: Calculate the total amount after the second year.
- **Total Amount after 2 years** = Amount after 1st year + Interest for 2nd year
\[ \text{Total Amount} = 4200 + 630 = 4830 \]

### Final Answer:
The total amount Ram Singh will have to pay after two years is Rs 4830.

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