Ram deposited an amount of ₹ 8,000 in a bank’s savings account with interest 6.5% compounded monthly. What amount will he get at the end of 18 months?
Given,
Principal amount (P) = ₹ 8,000
Rate of interest (R) = 6.5% per annum = $$\frac{6.5}{12}\%$$ per month
Time (n) = 18 months
$$\therefore\ $$Amount = $$P\left(1+\frac{R}{100}\right)^n$$
$$=8000\left(1+\frac{6.5}{12\times100}\right)^18$$
$$=8000\left(1+0.0054167\right)^{18}$$
$$=8000\left(1.0054167\right)^{18}$$
$$=$$₹ 8816.97
Hence, the correct answer is Option A
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