Question

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

• A. $400$
• B. $410$
• C. $420$
• D. $430$

Answer 1

The correct option is C $420$

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

$\Rightarrow$ $A=2000\times (1+\frac{10}{100}{)}^2$

$\Rightarrow$ $A=2000\times \frac{121}{100}$

$\Rightarrow$ $A=Rs.2420.$

$\therefore$ $C.I.=A-P=Rs.2420-Rs.2000=Rs.420.$