What sum will amount to ₹24494.40 in 2 years at 8 % per annum, if compound interest is compounded annually?
Answer & explanation
Correct answer: option 3
The Formula that we used here is -
Amount = P$(1 \;+\; \frac{R}{100})^t$
24494.40 = P [ 1 + \(\frac{8}{100}\)]²
24494.40 = P [ \(\frac{27}{25}\)]²
24494.40 = P × \(\frac{27}{25}\) × \(\frac{27}{25}\)
P = 21000