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A bank offers 10% interest rate compounded annually. A person deposits Rs. 20,000 every year in his account. If he does not withdraw any amount, then how much balance will his account show after four years?
Options:
A .  Rs. 102102
B .  Rs. 102220
C .  Rs. 104202
D .  Rs. 104222
Answer: Option A

Answer : Option A

Explanation :

$MF#%\text{Rs.20000 after 4 years } = 20000\left(1 + \dfrac{10}{100}\right)^4 = 20000\left(\dfrac{11}{10}\right)^4 = \text{Rs. 29282}\\\\ \text{Rs.20000 after 3 years} = 20000\left(1 + \dfrac{10}{100}\right)^3 = 20000\left(\dfrac{11}{10}\right)^3 = \text{Rs. 26620}\\\\ \text{Rs.20000 after 2 years } = 20000\left(1 + \dfrac{10}{100}\right)^2 = 20000\left(\dfrac{11}{10}\right)^2 = \text{Rs. 24200}\\\\ \text{Rs.20000 after 1 year } = 20000\left(1 + \dfrac{10}{100}\right)^1 = 20000\left(\dfrac{11}{10}\right) = \text{Rs. 22000}$MF#%
Total amount after 4 years = 29282 + 26620 + 24200 + 22000 = Rs. 102102



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