Question

Find the amount after 2 years on a principal of ₹ 68,000 if the rate of compound interest is $12\frac{1}{2}$ p.c.p.a.

• A. Rs 86063.5
• B. Rs 86062.5
• C. Rs 87062.5
• D. Rs 88062.5

Answer 1

The correct option is C Rs 87062.5

Given: P = ₹ 68,000 , T(n) = 2 years

$R=12\frac{1}{2}$= $\frac{25}{2}$%

$A=P(1+\frac{r}{100}{)}^n$

$=68,000(1+\frac{25}{2\times 100}{)}^2$

$=68,000(\frac{225}{200}{)}^2$

$=68,000\times \frac{225}{200}\times \frac{225}{200}$

= ₹ 86,062.50