Question
A sum of ₹10000 is invested at compound interest for 2
years. If the interest rate is 5% per annum, what is the total amount after 2 years?Solution
Formula for compound interest: A = P(1 + r/100)² Where P = ₹10000, r = 5%, and n = 2 years A = 10000(1 + 5/100)² = 10000(1.05)² = 10000 × 1.1025 = ₹11025 Correct Option: b
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