Mr. Karim deposited TK 800 in a bank at 15% annual compound interest rate. At the end of the second year, the total amount including the interest will be:

Mr. Karim deposited TK 800 in a bank at 15% annual compound interest rate. At the end of the second year, the total amount including the interest will be:

A 850

B 900

C 1025

D 1058

Solution

Correct Answer: Option D

We know,

C=P(1+r/100)n

C=800(1+15/100)2

C=1058