Anil deposited Rs.8,000 in a two-year fixed deposit scheme on compound interest compounded annually at 5% per annum. Find the maturity value of the fixed deposit.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Rs.8,820
A = P × ( 1 + R/100)t
⇒ A = 8,000 × (1 + 5/100)2 = 8,000 × 21/20 × 21/20
⇒ A = 8,820.