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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?
Correct answer: A
Explanation and memory cue
The amount increases by 1/8th each year, so after one year it becomes 64000 + (1/8)*64000 = 64000 * 9/8 = 72000. After the second year, it increases by 1/8th again: 72000 * 9/8 = 81000. Hence, the amount after two years is Rs.81000.