Question

A man borrowed Rs.$60,000$ for $2$ years at $8$ % per year compound interest.

Calculate the final amount at the end of the second year.

• A. Rs. $68,984$
• B. Rs. $69,744$
• C. Rs. $69,910$
• D. Rs. $69,984$

Answer 1

The correct option is D Rs. $69,984$

$\Rightarrow$ $P=$Rs.$60000,T=2$years and $R=8\%$

$\Rightarrow$ $A=P(1+\frac{R}{100}{)}^T$

$\Rightarrow$ $A=60000\times (1+\frac{8}{100}{)}^2$

$\Rightarrow$ $A=60000\times (\frac{27}{25}{)}^2$

$\Rightarrow$ $A=60000\times \frac{729}{625}$

$\therefore$ $A=$Rs. $69,984.$