Question

Elsa puts Rs. $1000$ into an account to use for school expenses. The account earns $10\%$ interest, compounded annually. How much will be in the account after $2$ years?

• A. $1210$
• B. $2210$
• C. $3210$
• D. $4210$

Answer 1

The correct option is A $1210$

Given: $P=1000,r=10\%,n=2$ years
We know the formula $A=P\left[{(1+\frac{r}{100})}^n\right]$
Putting all the given values in the formula, we get

$A=1000\left[{(1+\frac{10}{100})}^2\right]$
$A=$ Rs. $1210$