Question

In beginning of the year 2019, ₹26,000 were saved. After adding ₹54,000 to this, the entire amount was invested at 8% compound interest. What will be the amount after 2 years?

Answer 1

Total amount to be invested = ₹54,000 + ₹26,000 = ₹80,000.
Time = 2 years , rate = 7.5% p.a.
Amount = $P(1+\frac{r}{100}{)}^t$
= $80,000(1+\frac{8}{100}{)}^2$
= $80,000\times \frac{108}{100}\times \frac{108}{100}$
= $(8\times {108}^2)$
= ₹93,312