Question

Ponmani makes a fixed deposit of Rs. $25,000$ in a bank for $2$ years. If the rate of interest is $4$% per annum, find the maturity value.

Answer 1

$Principal\left(P\right)=Rs25000$

$Time\left(T\right)=2years$

$Rate\left(R\right)=4\%$

$Maturityvalue=amount\left(A\right)$

$A=P+I$

$I=interest$

$=P+\frac{P\times R\times T}{100}$

$=P(1+\frac{R\times T}{100})$

$=25000(1+\frac{2\times 4}{100})$

$=25000(1+\frac{2}{25})$

$=27000$

$\therefore$ Maturity value $=Rs27000$