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Arun invested an amount of Rs. 20000 in a fixed deposit scheme for 2 years at compound interest rate 4 p.c.p.a. How much amount will Arun get on maturity of the fixed deposit?
Options:
A .  20342
B .  21632
C .  22324
D .  24120
Answer: Option B

Answer : Option B

Explanation :

$MF#%\begin{align}&\text{Amount after 2 years = }\text{P}\left(1 + \dfrac{\text{R}}{100}\right)^\text{T}\\\\ &= 20000\left(1 + \dfrac{4}{100}\right)^2 = 20000\left(\dfrac{104}{100}\right)^2 \\\\&= \dfrac{20000 \times 104 \times 104}{100 \times 100} = 2 \times 104 \times 104 = \text{Rs. }21632\end{align}$MF#%



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