Vandana invested an amount of ₹ 8000 in a fixed deposit scheme for 2 yr at the rate of 5% pa compound interest. How much amount will Vandana get on maturity of the fixed deposit?
Correct Answer: ₹ 8820
Explanation:
Given, P = ₹ 8000, R = 5% and n = 2 Yr
According to the formula,
Amount = p ( 1 + R / 100 )n
= 8000 ( 1 + 5/100 )2
= 8000 x (105/100)2
=8000 x (21/20) x (21/20)
= 20 x 21 x 21
= ₹ 8820
