Shohaib invested Rs. 8000 in a scheme for 2 years at compound interest rate 5% p.a. How much amount will Shohaib get on maturity of the fixed deposit?
Q1. Shohaib invested Rs. 8000 in a scheme for 2 years at compound interest rate 5% p.a. How much amount will Shohaib get on maturity of the fixed deposit?
Answer: Rs. 8820
Explanation: Compound interest formula: A = P(1 + r/100)ⁿ = 8000 × (1.05)² = 8000 × 1.1025 = Rs. 8820.