Question

In order to buy a bike Mohan borrowed ₹ 48,000 from his friend at compounded annually at a rate of interest of 10 % for 2 years .What is the amount that Mohan must pay back to his friend at the end of two years?

• A. Rs 58,090
• B. Rs 58,000
• C. Rs 58,050
• D. Rs 58080

Answer 1

The correct option is D Rs 58080

Given
P= ₹ 48,000
T(n)=2 years
R= 10%

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

$=48,000(1+\frac{10}{100}{)}^2$

$=48,000(\frac{110}{100}{)}^2$

$=48,000\times \frac{110}{100}\times \frac{110}{100}$

$=58,080$

The amount that Mohan must pay back to his friend at the end of two years= ₹58,080