Question

Find the amount on $Rs62,500$ for $2$ years at $8\%$ per annum compounded annually.

Answer 1

Given:-

$P=Rs.62500$

$n=2\text{years}$

$R=8$

As we know that,

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

$\therefore A=62500{(1+\frac{8}{100})}^2$

$\Rightarrow A=62500{\left(\frac{27}{25}\right)}^2$

$\Rightarrow A=\frac{62500\times 27\times 27}{25\times 25}=72900$

Hence the amount will be $Rs.72900$.