If a principal of ₹22,445 is deposited at the rate of 30% per annum for two years and interest is compounding annually, then what will be the amount (Approximately)?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. ₹37,933.
We know that,
A = P(1 + R/100)T
here, A = Amount, P = Principle, R = Rate, and T = Time
⇒ A = 22445(1 + 30/100)2
⇒ A = 22445(13/10)2
⇒ A = 22445 × 13/10 × 13/10
⇒ A = 37932.05 = ₹ 37933 (approximately)