Calculate the amount and the compound interest on :

₹ 4600 in 2 years when the rates of interest of successive years are 10% and 12% respectively.

For first year :

P = ₹ 4600

T = 1 year

R = 10%

I = $\dfrac{P \times R \times T}{100}$

$= \dfrac{4600 \times 10 \times 1}{100}$ = ₹ 460.

Amount = P + I = ₹ 4600 + ₹ 460 = ₹ 5060.

For second year :

P = ₹ 5060

T = 1 year

R = 12%

I = $\dfrac{P \times R \times T}{100}$

$= \dfrac{5060 \times 12 \times 1}{100}$ = ₹ 607.2.

Amount = P + I = ₹ 5060 + ₹ 607.2 = ₹ 5667.20

Compound interest = Final amount - Initial principal

= ₹ 5667.20 - ₹ 4600 = ₹ 1067.20

Hence, compound interest = ₹ 1067.20 and amount = ₹ 5667.20