Every year an amount increases by 1/8th of itself. How much will it be after two years if its present value is Rs.64000?

One Answer on this Question

1. ₹1 today increases to (1+1/8) = 9/8 after 1year.

   After 2 years it increases to 9/8 of 9/8 = (9/8)^2 =81/64 times.

   Hence ₹64000 increase to 64000×81/64 =₹81000

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