Question

Amount the person receives on depositing ₹ 6,500 for 2 years at 10% per annum compounded annually is ________.

• A. $A=6,500{[1+\frac{10}{100}]}^2$
• B. $A=6,500{[1+\frac{10}{100}]}^3$
• C. $A=6,500{[1+\frac{20}{100}]}^2$
• D. $A=6,500[\frac{10}{100}{]}^2$

Answer 1

The correct option is A $A=6,500{[1+\frac{10}{100}]}^2$

Given,
P = 6,500, N = 2, R = 10%
We know that,
​​​$A=P{[1+\frac{R}{100}]}^n$
Substituting the values in the above formula.
$A=6,500{[1+\frac{10}{100}]}^2$