Question 73

Ram deposited an amount of ₹ 8,000 in a bank’s savings account with interest 6.5% compounded monthly. What amount will he get at the end of 18 months?

Solution

Given,

Principal amount (P) = ₹ 8,000

Rate of interest (R) = 6.5% per annum = $$\frac{6.5}{12}\%$$ per month

Time (n) = 18 months

$$\therefore\ $$Amount = $$P\left(1+\frac{R}{100}\right)^n$$

$$=8000\left(1+\frac{6.5}{12\times100}\right)^18$$

$$=8000\left(1+0.0054167\right)^{18}$$

$$=8000\left(1.0054167\right)^{18}$$

$$=$$₹ 8816.97

Hence, the correct answer is Option A

Share on Whatsapp Share on Whatsapp

Create a FREE account and get: