Rajan makes fixed deposit of Rs. 8000 in a bank for a period of 2 years. If the rate of interest is 10 % p.a. compounded annually, find the amount payable to him by the bank after two years.

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Solution

The amount of fixed deposit = Rs. 8000
R = 10 % pa and n =2
The amount returned by the bank = $P [1 + \frac{r}{100}]^{n}$

$= 8000 [1 + \frac{10}{100}]^{2} = 8000 \times 1.21 = 9680$ Rs.

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Rajan makes fixed deposit of Rs. 8000 in a bank for a period of 2 years. If the rate of interest is 10 % p.a. compounded annually, find the amount payable to him by the bank after two years.

The amount of fixed deposit = Rs. 8000R = 10 % pa and n =2The amount returned by the bank = P[1+r100]n=8000[1+10100]2=8000×1.21=9680 Rs.

The amount of fixed deposit = Rs. 8000
R = 10 % pa and n =2
The amount returned by the bank = $P [1 + \frac{r}{100}]^{n}$

$= 8000 [1 + \frac{10}{100}]^{2} = 8000 \times 1.21 = 9680$ Rs.