Question

Find the compound interest on Rs. $10,000$ for $2$ years, compounded annually at $10\%$ per annum.

• A. $2000$
• B. $2100$
• C. $2200$
• D. $3330$

Answer 1

Answer: (B)

$2100$

We have $P=$ Rs. $10,000,T=2$ years and $R=10\%$.

$\Rightarrow$ $A=P\times {(1+\frac{R}{100})}^T$

$\Rightarrow$ $A=10000\times {(1+\frac{10}{100})}^2$

$\Rightarrow$ $A=10000\times {\left(\frac{11}{10}\right)}^2$

$\Rightarrow$ $A=$ Rs. $12100$

Thus $C.I.=A-P=$ Rs. $12100$ $-$ Rs. $1000=$ Rs. $2100$