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Mathematics

If Sukriti borrows ₹8000 for two years at the rate of 10% per annum compound interest, then the amount to be paid by her at the end of two years to clear the debt is

  1. ₹8800

  2. ₹9600

  3. ₹9680

  4. ₹102400

Compound Interest

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Answer

A = P(1+r100)nP\Big(1 + \dfrac{r}{100}\Big)^n

Putting values in formula we get,

A=₹8000×(1+10100)2=₹8000×(110100)2=₹8000×(1110)2=₹8000×1110×1110=₹8000×121100=₹9680.A = ₹8000 \times \Big(1 + \dfrac{10}{100}\Big)^2 \\[1em] = ₹8000 \times \Big(\dfrac{110}{100}\Big)^2 \\[1em] = ₹8000 \times \Big(\dfrac{11}{10}\Big)^2 \\[1em] = ₹8000 \times \dfrac{11}{10} \times \dfrac{11}{10} \\[1em] = ₹8000 \times \dfrac{121}{100} \\[1em] = ₹9680.

Hence, Option 3 is the correct option.

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