Question
If Rs. 25,000 is loaned at a
compound interest rate of 50% per annum, and the interest is compounded once every year, what will the amount be after 2 years?Solution
ATQ, Using the compound interest formula: Amount =Â 
Amount after 2 years = 25,000 ×[1+ (50/100)]2 = 25,000 × (1.5)2 = Rs.56,250
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