Vandana invested an amount of ₹ 8000 in a fixed deposit

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Vandana invested an amount of ₹ 8000 in a fixed deposit scheme for 2 yr at the rate of 5% pa compound interest. How much amount will Vandana get on maturity of the fixed deposit?

1. ₹ 8000
2. ₹ 8890
3. ₹ 8888
4. ₹ 8820

Correct Option: D

Given, P = ₹ 8000, R = 5% and n = 2 Yr
According to the formula,
Amount = p ( 1 + R / 100 )ⁿ
= 8000 ( 1 + 5/100 )²
= 8000 x (105/100)²
=8000 x (21/20) x (21/20)
= 20 x 21 x 21
= ₹ 8820