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  4. Sagar made a fixed deposit of ₹ 18,000 in a bank, for two, years at 5 % per annum under compound interest. The maturity value (in ₹) is

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Q. Sagar made a fixed deposit of $₹ 18,000$ in a bank, for two, years at $5 \%$ per annum under compound interest. The maturity value (in ₹) is____

Banking

Solution:

Given: $P=₹ 18,000, n=2$ years, $R=5 \%$
$A =P\left(1+\frac{R}{100}\right)^2 $
$A =18,000\left(1+\frac{5}{100}\right)^2 $
$=18,000 \times \frac{21}{20} \times \frac{21}{20}=₹ 19,845$