Question

Pritam bought a plot of land for Rs. 640000. Its value is increasing by 5% of its previous value after every six months. What will be the value of the plot after 2 years?

Answer 1

Given details are,

Price of land is = Rs 640000

Rate of increase = 5% in every six month

By using the formula,

A = P (1 + R/100)ⁿ

= 640000 (1 + 5/100) (1 + 5/100) (1 + 5/100) (1 + 5/100)

= 640000 (105/100) (105/100) (105/100) (105/100)

= 640000 (1.025) (1.025) (1.025) (1.025)

= 706440.25

∴ The value of the plot after two years will be Rs 706440.25.