Multiple choice

Avinash borrows Rs. 60,000 from a bank to buy a new machine. If the rate of interest is 10% per annum compounded annually, then what will be the amount payable after two years?

  1. Rs. 65,600

  2. Rs. 72,400

  3. Rs. 72,600

  4. Rs. 73,400

  5. Rs. 76,500
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Amount = P(1 + r/100)^n = 60000(1 + 0.10)^2 = 60000(1.21) = 72600.

AI explanation

Using the compound interest formula A = P(1 + R/100)^n, the amount payable is calculated as 60000 * (1 + 10/100)^2. This simplifies to 60000 * 1.1 * 1.1, which equals Rs. 72,600.

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