A woman invests Rs. 200 at the start of each year at 5% compound interest per annum. How much will her investment be at the end of the 2^nd year?

Show answer & explanation

Answer: (B) 430.5

Explanation

The first Rs 200 grows for 2 years: 200 × 1.05² = 220.50. The second Rs 200 grows for 1 year: 200 × 1.05 = 210. Total = Rs 430.50.