# Aptitude | Compound Interest | Question 9

An amount of Rs.8000 is landed out for 2 years at compound interest rate 5 % per annum. How much interest will be incurred on maturity of the FD?**(A)** 850**(B)** 832**(C)** 800**(D)** 820**Answer:** **(D)****Explanation:** = 8000(1+5/100)^{2} – 8000

= 8000(105/100)^{2} – 8000

= 8000 [(105/100)^{2} -1]

= 8000 [1.1025-1]

= 8000 X 0.1025

= 820

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