How Much Money He has to Pay After 2 Years?

A man took a loan of Rs. 10,000 at an interest of 3% compounded annually for 2 years. How much money he has to pay after 2 years?

  1. Rs. 10,609
  2.  Rs. 10,309
  3.  Rs. 10,600
  4.  Rs. 10,300
Anurag Mishra Professor Asked on 6th September 2015 in Maths.
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  • 1 Answer(s)

    Answer: (1) Rs. 10,609

    Explanation:-
    Given-
    Principal = Rs. 10,000, Rate = 3%, Time = 2 years.
    Formula-
    Amount = Principal (1 + Rate/100)time

    Then, Amount = 10,000 (1 + 3/100)2
    = 10,000 (103/100)2
    = 10,000 x 103 x 103 /100 x 100
    = 103 x 103
    = Rs. 10,609

    Then, he will  be pay Rs. 10,000 after 2 years.

    Hence, the answer is (1) Rs. 10,609.

    Anurag Mishra Professor Answered on 9th September 2015.
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