Question

Ganesh invested rs50000 in a nationalised bank for 2 years at the rate of 9 p.c.p.a. at compound interest. What amount will ganesh recieve from the bank at the end of 2 years?

Answer 1

The required answer is rs.59405

Answer 2

Answer:

The amount will Ganesh receive from the bank at the end of 2 years is Rs.59405.

Step-by-step explanation:

Given : Ganesh invested Rs.50000 in a nationalized bank for 2 years at the rate of 9 p.c.p.a. at compound interest.

To find : What amount will Ganesh receive from the bank at the end of 2 years?

Solution :

Applying compound interest formula,

$A=P(1+r)^t$

Where, A is the amount

P is the principal P=Rs.50000

r is the rate of interest r=9%=0.09

t is the time t=2 years.

Substitute the value in the formula,

$A=50000(1+0.09)^2$

$A=50000(1.09)^2$

$A=50000\times 1.1881$

$A=59405$

Therefore, The amount will Ganesh receive from the bank at the end of 2 years is Rs.59405.