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If you invest Rs. 5,000 in a fixed deposit account with an annual interest rate of 8%, compounded annually, how much money will you have after 3 years
Question

If you invest Rs. 5,000 in a fixed deposit account with an annual interest rate of 8%, compounded annually, how much money will you have after 3 years?

A.

Rs 5,240

B.

Rs 5,640

C.

Rs 6,480

D.

Rs 6,720

Correct option is D


Using the compound interest formula: A = P(1 + r)^n, where P = 5000, r = 0.08, and n = 3, the amount after 3 years is Rs 6,720.

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