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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