Question 121

What will be the amount on Rs 25000 at the rate of 20% per annum compounded yearly for 4 years?

Solution

Principal sum = Rs. 25,000

Rate of interest = 20% and time period = 4 years

Amount after compound interest = $$P(1+\frac{r}{100})^T$$

= $$25000(1+\frac{20}{100})^4$$

= $$25000\times(\frac{6}{5})^4$$

= $$40\times1296=Rs.$$ $$51,840$$

=> Ans - (A)

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