Albert invested the amount of $8,000 in a fixed deposit for 2 years at a compound interest rate of 5% per annum. How much will Albert get on the maturity of the fixed deposit?

Question 4 options:

$8510

$8620

$8730

$8820

Question

Albert invested the amount of $8,000 in a fixed deposit for 2 years at a compound interest rate of 5% per annum.  How much will Albert get on the maturity of the fixed deposit?

Question 4 options:
	
$8510

	
$8620

	
$8730

	
$8820

mathstudent55 · Answer

You can use the formula for compound interest.

Since this problem is for only 2 years, you can also do it with simple interest.
Find the simple interest for one year.
Add it to the original amount to find the new amount after one year of interest.
Now start with the new amount and add simple interest for a second year.

tokyoqu33n · Answer

whats the formila