Question

Toby invested Rs. $1200$ for $2$ years in a savings account. His account depreciates by $8\%$ per annum compound interest. How much did Toby have in his savings account after $2$ years?

Answer 1

Given, $P=1200,r=8\%,n=2$ years
We know, $A=P\left[{(1-\frac{r}{100})}^n\right]$
$\Rightarrow A=1200\left[{(1-\frac{8}{100})}^2\right]$
$\Rightarrow A=$ Rs. $1015.68$

Thus, after $2$ years Toby have Rs. $1015.68$.