Question

    What will Rs. 40,000 amount to in 2 years at the rate of

    20% p.a., if interest is compounded yearly?
    A Rs. 48,620 Correct Answer Incorrect Answer
    B Rs. 58,564 Correct Answer Incorrect Answer
    C Rs. 57,600 Correct Answer Incorrect Answer
    D Rs. 60,000 Correct Answer Incorrect Answer

    Solution

    A =P(1+r/100)n =40000(1+20/100)² =40000×6/5 ×6/5 =1600×36 =57600.

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