Question

Pritam bought a plot of land for Rs. 6,40,000. Its value is increasing by 5% of its previous value after every 6 months. What will be the value of the plot after 2 years?

Answer 1

Time period ,T=24 months/6months=4
Rate,R=5%
Principal,P=6,40,000
Intrest of plot after two years=P{1+R/100}^T
=640000{1+5/100}^4
=640000{105/100}^4=777924
value of the plot after 2 years=640000+777924=1,417,924

Answer 2

Present value of plot=Rs6,40,000
Value aftet 1st 6 months=Rs672000
Value aftet 2nd 6 months=Rs705600
Value aftet 3rd 6 months=Rs740800
Value aftet 4th 6 months=Rs777924
Hence value of plot after 2 years=Rs777925