Question

The amount on Rs. $24,480$ at $\left(6\frac{1}{4}\%\right)$ per annum compunded annually for $2$ years is,

• A. Rs. $27635.625$
• B. Rs. $22,409.750$
• C. Rs. $24,409.525$
• D. Rs. $23,509.625$

Answer 1

The correct option is A Rs. $27635.625$

We have,

$P=Rs.24480$

$R=6\frac{1}{4}\%=\frac{25}{4}\%$

$T=2years$

$A=?$

We know that

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

So,

$A=24480{(1+\frac{25}{4\times 100})}^2$

$A=24480{(1+\frac{1}{4\times 4})}^2$

$A=24480{(1+\frac{1}{16})}^2$

$A=24480{\left(\frac{17}{16}\right)}^2$

$A=Rs.27635.625$

Hence, this is the answer.