Multiple choice

Amit invested an amount of Rs. 4000 in a fixed deposit scheme for 2 years at compound interest rate of 5% per annum. How much money will Amit get on maturity?

  1. Rs. 8810

  2. Rs. 4410

  3. Rs. 4510

  4. Rs. 5120

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Amount = P(1 + r/100)^n = 4000(1 + 5/100)^2 = 4000(1.05)^2 = 4000 * 1.1025 = 4410.

AI explanation

Using the compound interest formula for the maturity amount: Amount equals Principal multiplied by (1 plus Rate divided by 100) raised to the time. We substitute the values to get 4000 multiplied by (1 plus 0.05) squared. This becomes 4000 multiplied by 1.1025. Multiplying these gives a maturity value of Rs. 4410.

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