A woman invests Rs. 4000 at the start of each year at 5% compound interest per annum. How much will her investment be at the end of the 2nd year?
Correct Answer : d ) Rs. 8610Explanation :
According to question:
Principal amount for 1st year = Rs. 4000
Rate = 5%
We know that, for 1 year SI = CI
Here, P = Principal amount, r = rate of interest and t = time
⇒ SI1 = 200
Therefore, Principal amount for 2nd year = 4000 + 200 + 4000 = ₹ 8200
⇒ SI2 = 410
Thus, the required amount = 8200 + 410 = ₹ 8610
Hence, (d) is the correct answer.