The question asks:

Find the amount compounded annually on Rs 25,000 for 2 years if the rates of interest for two years are 10% and 12% respectively.

This involves successive compounding at different rates of interest. Let's solve it step by step:

Formula for Compound Interest:

$A = P \times (1 + r_1) \times (1 + r_2)$ Where:

• $P$ is the principal amount (Rs 25,000)
• $r_1$ is the rate for the first year (10% or 0.10)
• $r_2$ is the rate for the second year (12% or 0.12)

Step-by-Step Solution:

1. Substitute the values: $A = 25000 \times (1 + 0.10) \times (1 + 0.12)$

2. Simplify the first term: $A = 25000 \times 1.10 \times 1.12$

3. Perform the multiplications: $A = 25000 \times 1.232 = 30,800$

Final Answer:

The total amount after 2 years is Rs 30,800.

Do you want a breakdown or have any further questions? Here are 5 related questions to explore:

1. What is the difference between compound interest and simple interest?
2. How does successive compounding at different rates work?
3. What if the rates of interest were reversed (12% for the first year and 10% for the second)?
4. How would the calculation change if the compounding was done quarterly instead of annually?
5. What is the formula for compound interest if the rate changes every year?

Tip: Always convert percentages to decimals before applying them in formulas!