Pritam bought a plot of land for Rs 640000. Its value is increasing by 5% of its previous value after every six moth. What will be the value of the plot after 2 years?

Explanation

Given:
Present value of plot `(P)=Rs.640000`
Rate `(R)=5%` per half year
Period `(n)=2` years or `4` half years
`∴`Value of plot after `2` years,
`A=P(1+R/100)^n`
`A=Rs.640000(1+5/100)4`
`A=Rs.640000(21/20)^4`
`A=Rs.640000×21/20×21/20×21/20×21/20`
`A=Rs.777924`
Hence, the value of the plot after two years will be `Rs.777924`.