Multiple choice general knowledge math & puzzles

Albert invested an amount of Rs. 8000 in a fixed deposit scheme for 2 years at compound interest rate 5 p.c.p.a. How much amount will Albert get on maturity of the fixed deposit?

  1. 8600

  2. 8620

  3. 8820

  4. None of these

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Maturity value = P(1 + r)^t = 8000(1.05)² = 8000 × 1.1025 = 8820. Therefore, Albert gets Rs. 8820 at maturity. Option C is correct.