Question

Ramesh invested ₹ 50,000 in a stock market for 2 years at rate of 10 p.c.p.a at compound interest .What amount Ramesh will receive from stock market at the end of 2 years?

• A. Rs 61,500
• B. Rs 62,500
• C. Rs 60,500
• D. Rs 60,000

Answer 1

The correct option is C Rs 60,500

Given
P= ₹ 50,000
T(n)= 2 years
R= 10%
We know that

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

$=50,000(1+\frac{10}{100}{)}^2$

$=50,000(\frac{110}{100}{)}^2$

$=50,000\times \frac{110}{100}\times \frac{110}{100}$

$=60,500$

Ramesh will receive an amount of ₹60,500 from stock market at the end of 2 years.