# 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?

- Rs. 10,609
- Rs. 10,309
- Rs. 10,600
- Rs. 10,300

**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.