Question

A sum of ₹ 10000 compounded annually at the rate of 15% per annum will amount to ____ after 2 years.

• A. ₹ 13225
• B. ₹ 15442
• C. ₹ 16542
• D. ₹ 17658

Answer 1

The correct option is A ₹ 13225

Amount (A) under compound interest is calculated as:
$A=P\times {[1+\frac{R}{100}]}^n$
where,
P - Principal
R - Rate of Interest
n - Time period

Given, A = ₹ 10000, R = 15 and n = 2

$\Rightarrow A=10000\times {[1+\frac{15}{100}]}^2=₹13225$