Question

A bank offers to pay you 6 percent compounded monthly. You decide to invest Rs.40,000 for two years. What is the future value of your investment
if interest payments are reinvested at 6 percent?

Answer 1

Answer:

Principal 40000

Rate of interest 6%

time 2yrs

formula We apply compound interest

P*R*T/200

40000*6*2/200

answer will be 2400

Answer 2

Answer:

4800

Step-by-step explanation:

P=40,000

R=6

T=2yrs

Interest=P×R×T/100

Interest=40000×6×2/100

Interest=400×6×2

Interest=4800