Question

Ram deposited an amount of 8,000 in a bank's savings account with interest 6.5% com pounded monthly. What amount will he get at the end of 18 months ?​

Answer 1

Answer:

Ram will ger Rs.9360 at the end of the 18th month

Answer 2

Given :-

• Deposit amount = Principal = Rs.8000 .
• Annual interest rate Rate = 6.5% compounded monthly .
• Time = 18 months .

To Find :-

• Amount at the end of 18 months ?

Solution :-

we know that, when rate is compounded monthly ,

• A = P[1 + (r/100*n)]^(T)

we have,

• P = Rs.8000 .
• r / 100 = 6.5/100 = 0.065 .
• n = 12 .
• T = 18

putting values we get,

→ A = 8000[1 + (0.065/12)]¹⁸

→ A = 8000[1 + 0.005]¹⁸

→ A = 8000 * (1.005)¹⁸

→ A = 8000 * 1.094

→ A = Rs.8752 (Ans.)