523FinanceMedium
If you plan to save Rs. 5,000 with a bank at an interest rate of 8%, what will be the worth of your amount after 4 years if interest is compounded annually?
ARs. 6,802
BRs. 5,400
CRs. 5,900
DRs. 6,600
Correct answer
A. Rs. 6,802
Explanation
FV = PV * (1+ i) ^n = 5,000 (1+0.08) ^4 = 6802