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    Question

    A sum of Rs. 10,000 is invested at 10% per annum

    compound interest, compounded annually. What will be the compound interest for 2 years?
    A 5,500 Correct Answer Incorrect Answer
    B 4,200 Correct Answer Incorrect Answer
    C 2,100 Correct Answer Incorrect Answer
    D 2,120 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Amount after 2 years: A = P(1 + R/100)² = 10,000 × (1.10)² = 10,000 × 1.21 = 12,100 CI for 2 years = A − P = 12,100 − 10,000 = 2,100

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