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      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)Β² =40000Γ—6/5 Γ—6/5 =1600Γ—36 =57600.

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