Question

Mahesh bought a house for Rs. 200000. At the end of the first year, he sold it at a loss of 10% on his investment. He invested the money thus obtained at 20% per annum compound interest for 2 years. The value this investment would amount to (in Rs.)

Answer 1

Selling price of the house `=200000(1+(10)/(100))=180000`
Sum invested in the second year =Rs. 180000
This would amount to (in Rs. )=180000
`(1+(10)/(100))=180000(1.2)^(2)=180000(1.44)`
=259200.