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An amount of Rs 6000 lent at 5% per annum compounded interest for 2 years will become =

a) Rs. 600
b) Rs. 6600
c) Rs. 6610
d) Rs. 6615

Answer: d
Explanation:
$$\eqalign{ & {\text{Amount = 6000}}{\left( {1 + \frac{5}{{100}}} \right)^2} \cr & {\text{Amount = 6000}} \times \frac{{21}}{{20}} \times \frac{{21}}{{20}} \cr & {\text{Amount = Rs. 6615}} \cr} $$

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