Question

Maria invested Rs. 8000 in a business. She would be paid interest at 5% per annum compounded annually. Find the amount credited against her name at the end of the second year.

• A. Rs.8820
• B. Rs.8020
• C. Rs.8780
• D. Rs.7820

Answer 1

The correct option is A Rs.8820

Here, $P=Rs.8000$,

$R=5\%$ per annum and $n=2$ years.

$\therefore$ Amount after $2$ years $=P{(1+\frac{R}{100})}^n$

$=Rs.[8000\times {(1+\frac{5}{100})}^2]$

$=Rs.(8000\times \frac{105}{100}\times \frac{105}{100})$

$=Rs.8820$