Question

Mohan invested an amount of Rs. 62500 in a fixed deposit scheme for 2 years at 12% compound interest per annum. How much amount will he get on the maturity of the fixed deposit?

1. Rs. 70800
2. Rs. 78400
3. Rs. 75800
4. Rs. 78410

Answer 1

Correct Answer - Option 2 : Rs. 78400

Given:

A= Rs.62500

N = 2 years

r = 12%

Concept:

A = P(1 + r/100)ⁿ

Calculation:

Principal, P = Rs. 62500

Rate of interest, r = 12%

Number of years, n = 2

Amount = 62500 × (1 + 12/100)² = 62500 × (1.12)² = 78400

∴ Mohan will get Rs. 78400 on the maturity of the fixed deposit.