Question

    An investor deposits ₹50,000 in an account offering 8%

    compound interest annually. What will be the maturity value after 3 years?
    A ₹62,400 Correct Answer Incorrect Answer
    B ₹63,000 Correct Answer Incorrect Answer
    C ₹62,999 Correct Answer Incorrect Answer
    D ₹63,240 Correct Answer Incorrect Answer

    Solution

    FV = P(1 + r)n = 50,000(1.08)3 = ₹63,240 approx. Time value helps in understanding the compounding effect on investment over time.

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