A invested an amount of ₹12,000 in a fixed deposit scheme for 2 years at an interest rate of 5% per annum, compounded annually. How much amount will A get on maturity of the fixed deposit ?
Answer & explanation
Correct answer: option 1
The Formula that we used here is -
Amount = P$(1 \;+\; \frac{R}{100})^t$
= 12000 [ 1 + \(\frac{5}{100}\)]²
= 12000 [ \(\frac{21}{20}\)]²
= 12000 × \(\frac{21}{20}\) × \(\frac{21}{20}\)
= 13230