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    5. If ₹10,000 is invested at 10% p.a. compounded annually, what will be the amount after 2 years?

    Question

    If ₹10,000 is invested at 10% p.a. compounded

    annually, what will be the amount after 2 years?
    A ₹11,000 Correct Answer Incorrect Answer
    B ₹12,000 Correct Answer Incorrect Answer
    C ₹12,100 Correct Answer Incorrect Answer
    D ₹12,210 Correct Answer Incorrect Answer

    Solution

    Amount = P(1 + r)n = ₹10,000 × (1.10)2 = ₹10,000 × 1.21 = ₹12,100

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