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 ?

₹13,230

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