Question

Find the amount to be paid at the end of $2$ years on $Rs.2400$ at $5\%$ per annum compounded annually.

Answer 1

Given: Principal ($P$) = $Rs.2400$

Rate ($R$) = $5\%$

Time ($n$) = $2$ years

Using formula, $A=P{[1+\frac{R}{100}]}^n$,

$\Rightarrow A=2400{[1+\frac{5}{100}]}^2$

$=2400{\left[\frac{21}{20}\right]}^2$

$=6\times 21\times 21$

$=Rs.2646$

Thus, amount to be paid is $Rs.2646$.