Question

Ekansh borrowed Rs.$50,000$ for $2$ years at $20$ % per year compound interest. Calculate the final amount at the end of the second year.

• A. $70,000$
• B. $71,000$
• C. $72,000$
• D. $75,000$

Answer 1

The correct option is C $72,000$

$\Rightarrow$ Here, $P=$Rs.50,000,\,T=2\,years and $R=20\%$.

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

$\to$ $A=50,000\times (1+\frac{20}{100}{)}^2$

$\Rightarrow$ $A=50000\times \frac{36}{25}$

$\therefore A=$Rs.$72,000.$