Question

A owner increase the rent of his house by 5%at the end of each year. If currently it rate is 2500₹ per month how much will be sent after 2 years​

Answer 1

Answer:

Rent after 2 years will be Rs.33075

Step-by-step explanation:

Current rate per month = Rs.2500

Hence, rent for one year = Rs.2500 × 12 = Rs.30000

Rent after 2 years = Rs.(30000 × 105/100 × 105/100) = Rs.33075

Answer 2

Answer:

2756.25

Step-by-step explanation:

CI = A-P

P=2500

R=5

A= P(1+R/100)^N

A= 2500(1+5/100)^2

A=2500(100/100+5/100)^2

A=2500(105/100)^2

A=2500 * 105/100 *105/100

A=25 * 105 *105/100

A=105 *105/4

A=2756.25

CI = A-P

CI = 2756.25 - 2500

CI= 256.25

The owner will increase the rent by 256.25 at the end of two years and the rent to be paid will be 2756.25