If you save Rs. 5,000 in a bank at 8% interest compounded annually, what will it be worth after 4 years?
Correct answer A. Rs. 6,802
Explanation
Using FV = PV(1 + r)^n gives 5,000 x 1.08^4 = 5,000 x 1.3605, which is about Rs. 6,802.
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