Ram deposited an amount of ₹ 8,000 in a bank’s savings account with interest 6.5% compounded monthly. What amount will he get at the end of 18 months?
Answer & explanation
Correct answer: option 1
Formula used-
Amount = P$(1 \;+\; \frac{R}{100})^t$
Here, Amount = Rs 8000 , R = 6.5% per month , t = 18 months
A = 8000$(1 \;+\; \frac{6.5}{12 ×100})^18$
⇒ A = 8000[$(\frac{100.54}{100})^18 $]
⇒ A = 8000 ( 1.1021 )
⇒ A = 8816.97
So, amount is Rs. 8816.97