Question

Ganesh invested Rs 50,000 in a nationalised bank for 2 years at the rate of 9 p.c.p.a at compound interest. What amount will Ganesh receive from the bank at the end of 2 years?

Answer 1

Principal = Rs 50,000
Rate of interest = 9% p.a.
Number of years (N) = 2 years
Amount $=\mathrm{P}{\left(1+\frac{\mathrm{R}}{100}\right)}^{\mathrm{N}}$
$$\begin{gathered} =50000{\left(1+\frac{9}{100}\right)}^2 \\ =50000{\left(\frac{109}{100}\right)}^2 \\ =50000\times \frac{109}{100}\times \frac{109}{100} \\ =\mathrm{Rs}59405 \end{gathered}$$
∴ Ganesh will receive Rs 59405 from the bank.