Question

A sum of Rs. 91,00 is borrowed at 20% per annum compounded annually. If the amount is to be paid in two years, the amount will be
(a) Rs. 131,040
(b) Rs. 132,800
(c) Rs. 132,500
(d) Rs. 142,300

Answer 1

ammon
$ammount = principle(1 + rate \div 100) ^{time } \\ ammount = 91000 \times 120 \div 100 \times 120 \div 100 \\ ammount = 910 \times 12 \times 12 \\ ammount = 910 \times 144 \\ ammount = 131040$
answer is a)rs 131,040