Find the amount obtained by investing ,20,000 at 10% p.a. compound interest for two years, compounded annually.

22000

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24000

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26000

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24200

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Solution

The correct option is D 24200
When interest is compounded, Amount $A = P (1 + \frac{R}{100})^{n}$
So, for the given situation, $A = 20, 000 \times (1 + \frac{10}{100})^{2} = 20, 000 \times 1.1 \times 1.1 = R s 24, 200$

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Find the amount obtained by investing ,20,000 at 10% p.a. compound interest for two years, compounded annually.

The correct option is D 24200When interest is compounded, Amount A=P(1+R100)nSo, for the given situation, A=20,000×(1+10100)2=20,000×1.1×1.1=Rs24,200

The correct option is D 24200
When interest is compounded, Amount $A = P (1 + \frac{R}{100})^{n}$
So, for the given situation, $A = 20, 000 \times (1 + \frac{10}{100})^{2} = 20, 000 \times 1.1 \times 1.1 = R s 24, 200$