Question

Find the amount to be paid

1. At the end of 2 years on ` 2,400 at 5% per annum compounded annually.

2. At the end of 1 year on ` 1,800 at 8% per annum compounded quarterly.​

Answer 1

a=p(1+r/100)n

=2400(1+5/100)5

=2400(21/20)5

= 2400*21/20*21/20*21/20*21/20*21/20

=2400*4084101/3200000

=3036.07575

Answer 2

Answer:

2646 to be paid at the end of 2 years on Rs. 2400 at 5% per annum compounded annually. So, the correct answer is “2646”.