In an industrial area, the price of a plot of area 1 acre is ₹ 5 crores. If the price of land increases by 2% quarterly, then what will be the price of the plot after 1 year?

1. $5 \times \Big(1 + \dfrac{2}{100}\Big)^4$ crores

2. $5 \times \Big(1 + \dfrac{8}{100}\Big)^4$ crores

3. $5 \times \Big(1 + \dfrac{2}{100}\Big)$ crores

4. $5 \times \Big(1 + \dfrac{8}{100}\Big)$ crores

Given,

V = ₹ 5 crores

R = 2%

Price of land increases by 2% quarterly.

n = There are 4 Quarters in a year = 4

By Formula,

Value after n years = $V \times \Big(1 + \dfrac{R}{100}\Big)^n$

By substituting values,

$\text{Value after 1 year}= 5 \times \Big(1 + \dfrac{2}{100}\Big)^4$ crores.

Hence, Option 1 is correct option.