Question

The amount on Rs. $20,500$ at $7$ per annum compunded annually for $2$ years, is:

• A. $22470$
• B. $23470$
• C. $24470$
• D. $25470$

Answer 1

Answer: (B)

$23470$

$\Rightarrow$ $P=Rs.20,500,R=7\%$ and $T=2years$

$\Rightarrow$ $A=P(1+\frac{R}{100}{)}^T$

$\Rightarrow$ $A=20500\times (1+\frac{7}{100}{)}^2$

$\Rightarrow$ $A=20500\times (\frac{107}{100}{)}^2$

$\Rightarrow$ $A=20500\times (1.07{)}^2$

$\Rightarrow$ $A=20500\times 1.1449$

$\therefore$ $A=Rs.23470.$