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Q.

Ramayya borrowed Rs.7500 at 16% compound interest. How much he has to pay at the end of two years to clear the loan?

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a

Rs.7870.50

b

Rs.7078.50

c

Rs.10092.00

d

Rs.7780.50

answer is C.

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Detailed Solution

A=P1+R100T

=75001+161002

=7560×116100×116100

=Rs.10,092

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