Question

The Amount on Rs. $20,000$ at $6\frac{1}{4}\%$ per annum compunded annually for $2$ years $73$ days, is:

• A. $57205$
• B. $56405$
• C. $22860$
• D. $50000$

Answer 1

Answer: (C)

$22860$

Here, $P=$ Rs. $20,000,T=2$ years $73$ days $=2\frac{1}{5}$ years and $R=6\frac{1}{4}\%=\frac{25}{4}\%$

$\Rightarrow$ $A=20000\times {(1+\frac{\frac{25}{4}}{100})}^2\times (1+\frac{\frac{1}{5}\times \frac{25}{4}}{100})$

$\Rightarrow$ $A=20000\times {(1+\frac{1}{16})}^2\times (1+\frac{1}{80})$

$\Rightarrow$ $A=20000\times {\left(\frac{17}{16}\right)}^2\times \left(\frac{81}{80}\right)$

$\Rightarrow$ $A=20000\times \frac{289}{256}\times \frac{81}{80}$

Therefore, $A=$ Rs. $22860$