Question

If a person saves ? 2 lakhs for two years in a fixed deposit account at 4% interest rate per annum
what amount will he get on maturity if Interest is compounded annually?​

Answer 1

Answer:

The maturity value formula is V = P x (1 + r)^n. You see that V, P, r and n are variables in the formula. V is the maturity value, P is the original principal amount, and n is the number of compounding intervals from the time of issue to maturity date. The variable r represents that periodic interest rate.