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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