Question

a shopkeeper bought a shop at rs 1,80,000 in 2002. Every year, the price is incremented by 2%. What should be the price of the shop if he wants to sell in 2004

Answer 1

Step-by-step explanation:

Simple interest = (principal*time*rate) /100

P = 180000

R = 2%

T = 1(year)

180000*2*1/100

Simple interest = ₹3600

so the incremented valie after two years (in 2014) =

3600*2 = ₹7200

Total amount = ₹180000*₹7200 = ₹187200