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    Question

    If Rs. 25,000 is loaned at a compound interest rate of 50% per annum, and the interest is compounded once every year, what will the amount be after 2 years?

    A Rs.50,250 Correct Answer Incorrect Answer
    B Rs.46,250 Correct Answer Incorrect Answer
    C Rs.56,250 Correct Answer Incorrect Answer
    D None of these Correct Answer Incorrect Answer

    Solution

    ATQ, Using the compound interest formula: Amount = 

    Amount after 2 years = 25,000 ×[1+ (50/100)]2 = 25,000 × (1.5)2 = Rs.56,250

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