Suppose Rs.1,000 is deposited into a savings account that earns Compounded interest at an a rate of 5%. How much will be in the account after 2 years if the interest is compounded Semi annually?

A. 1120.8

B. 1118.8

C. 1140.8

D. 1103.8

Solution:

As we know the formula of Compounded Interest which is 

Here, P = 1000, r = 5% (0.05), t = 2