-What would be the total accumulated amount in 5 years if the sum of Rs. 10,000 is deposited in the bank at an interest rate of 6% per annum compounded monthly
A)rs. 13,488.50
B)rs. 13,345.50
C)rs. 13,288.50
D)rs. 13,500.50

Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount (the initial amount of money), r is the annual interest rate (decimal), n is the number of times that interest is compounded per year, and t is the time the money is invested for in years. Here, P = 10,000, r = 6% or 0.06, n = 12 (since the interest is compounded monthly), and t = 5 years. Plugging these values into the formula gives A = 10,000(1 + 0.06/12)^(12*5) = Rs. 13,488.50.

-What Would Be the Total Accumulated Amount in 5 Years