Question
A sum of ₹10,000 is invested at 6% compound interest
per annum for 2 years, compounded annually. What will be the total amount after 2 years?Solution
The formula for compound interest is: Amount = P(1 + r/100)ᵗ , where P = ₹10,000, r = 6%, and t = 2 years. Substitute into the formula: Amount = 10,000(1 + 6/100)² = 10,000(1.06)² = 10,000 × 1.1236 = ₹11,236 So, the total amount after 2 years is ₹11,236. Correct option: a
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