Albert invested an amount of Rs. 8000 in a fixed deposit scheme for 2 years at compound interest rate 5 p.c.p.a. How much amount will Albert get on maturity of the fixed deposit?
papay dey Answered question February 15, 2025
Compound Interest (CI) formula:
CI = P × (1 + R/100)^Time – P
Given values:
P = Rs. 8000
R = 5% per annum
Time = 2 years
CI = 8000 × (1 + 5/100)^2 – 8000
= 8000 × (1.05)^2 – 8000
= 8000 × 1.1025 – 8000
= 8820 – 8000
= 820
Amount on maturity = Principal + Compound Interest
= 8000 + 820
= 8820
Albert will get Rs. 8820 on maturity of the fixed deposit.
papay dey Answered question February 15, 2025
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