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How much amount is received by a person, if he gave a loan of Rs P at the rate of 4r% per annum for 2 years compounded annually?1. Rs. (r/125)22. Rs. P[(1 + r/100)]23. Rs. P [1 + (r/25)]24. Rs. P(1 + r)25. Insufficient data |
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Answer» Correct Answer - Option 3 : Rs. P [1 + (r/25)]2 Given: Principal = Rs. P Rate = 4r % Time = 2 years Formula used: A = P [1 + (r/100)]t Where A, P, t and r is amount, principal, time and rate respectively Calculation: A = P [(1 + 4r/100]2 ⇒ P [(1 + r/25)]2 ∴ The amount received is P [(1 + r/25)]2 |
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