Question

Irfan deposited 27000 rupees in a bank which pays 2% interest compound annually. How much would he get back after two year?

Answer 1

P = 27000

R = 2%

T = 2 years

Final amount = \(P \left(1 + \frac R{100}\right)^n\)

\(= 27 000 \left(1 + \frac 2{100}\right)^2\)

\(= 27 000 \left(1 + \frac 1{50}\right)^2\)

\(= 27000 \times \frac {51}{50} \times \frac{51}{50}\)

\(= 10.80 \times 2601\)

\(= 28090.8\)