Question

Mahima won a cash prize of ₹ 1500 for standing first in a race .She invested that amount as a term deposit in a bank for 2 years at a rate of compound interest of 8 p.c.p.a. What amount she will recieve from the bank at the end of the term?

• A. ₹ 1749.60
• B. ₹ 1780.30
• C. ₹ 1750.20
• D. ₹ 1762.80

Answer 1

The correct option is A ₹ 1749.60

Given
P= ₹ 1500 , T(n)= 2 years , R= 8%
We know , $A=P(1+\frac{r}{100}{)}^n$

$=1500(1+\frac{8}{100}{)}^2$

$=1500(\frac{108}{100}{)}^2$

$=1500\times \frac{108}{100}\times \frac{108}{100}$

$=1749.60$

The amount she will recieve from the bank at the end of the term = Rs. 1749.60