17 Views

Question : A invested an amount of Rs. 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?

Option 1: Rs. 13,230

Option 2: Rs. 11,280

Option 3: Rs. 12,450

Option 4: Rs. 14,560


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Rs. 13,230


Solution : When compounded annually, $ A= P(1+\frac{R}{100})^{T}$, Where $A$ is the total amount, $P$ is the principal amount, $R$ is the rate of interest per annum, and $T$ is the time in years.
Given:
$P$ = Rs. 12,000
$R$ = 5% per annum
$T$ = 2 years
Substituting these values into the formula,
$ A= 12000(1+\frac{5}{100})^{2}$
$ = 12000\times(\frac{21}{20})^{2}$
$ = 12000\times(\frac{441}{400})$
$ = 30\times 441 $
$ = 13230 $
Hence, the correct answer is Rs. 13,230.

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books