PRC-2 · Chapter 5 · Question 3 of 50
If a principal amount of Rs. 2,000 is deposited at an interest rate of 6% per annum compounded annually, what will the total future value be after 3 years?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 2,382.03
Explanation
Using the compound interest formula S = P(1 + i)^n: S = 2000 * (1 + 0.06)^3 = 2000 * 1.191016 = 2,382.03.
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