An amount of ₹8,00,000 is needed after 2 years to buy a car. The amount deposited in a bank gives 8% per annum interest. What should be the approximate amount to be deposited in present in the bank to meet the requirement; if the interest is compounded annually?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. ₹6,85,871
Given in the question
Amount = 800000
Rate = 8%
Time = 2year
Principal = x
So' we know
⇒ Amount = principal × (1+rate/100)time
⇒ 800000 = x (1+8/100)2
⇒ 800000 = x (108/100)2
⇒ 800000 = x (108×108/100×100)
⇒ x = 800000 × 100 × 100/108 × 108
⇒ x = 685871.05