Ifa person saves? 2 lakhs for twoyears in a fixed deposit account at 4

1.	Ifa person saves? 2 lakhs for twoyears in a fixed deposit account at 4 % interest rate per annum,what amount will he get on maturity if interest is compounded annually
Answer» let P = 200000, r = 4% = 4/100 = 0.04 and n = 2 years The amount A is given by A = p(1+r)ⁿ=> A = 200000(1+4/100)² = 200000(1+0.04)²=> A = 216320rs.

Ifa person saves? 2 lakhs for twoyears in a fixed deposit account at 4 % interest rate per annum,what amount will he get on maturity if interest is compounded annually

Answer»

let P = 200000, r = 4% = 4/100 = 0.04 and n = 2 years

The amount A is given by A = p(1+r)ⁿ=> A = 200000(1+4/100)² = 200000(1+0.04)²=> A = 216320rs.