A principal of Rs. 20000 is borrowed at compound interest (compounding annually) at the rate of 9 percent per annum. What will be the amount after 2 years?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. Rs. 23762.
A = P(1 + R/100)T
here, A = Amount, P = Principal, R = rate, and T = Time
⇒ A = 20000(1 + 9/100)2
⇒ A = 20000(1 + 0.09)2
⇒ A = 20000 × 1.1881
⇒ A = Rs. 23762