Given:
Present value= ₹ 25000
Interest rate= 8% per annum
Time=2 years
To find the amount we have the formula,
Amount (A) = P (1+(R/100))n
Where P is present value, r is rate of interest, n is time in years.
Now substituting the values in above formula we get,
∴ A = 25000 (1 + 8/100)2
⇒ A = 25000 (108/100)2
⇒ A = 25000 (1.08)2
⇒ A = 25000(1.1664)
⇒ A = ₹ 29160
Ratna has to pay ₹ 29160