Question

Find the compound interest on Rs. $20,000$ for $2$ years, compounded annually at $10\%$ per annum.

• A. $4200$
• B. $4300$
• C. $4400$
• D. $4500$

Answer 1

The correct option is A $4200$

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

$\Rightarrow$ $A=20000\times (1+\frac{10}{100}{)}^2$

$\Rightarrow$ $A=20000\times \frac{121}{100}$

$\Rightarrow$ $A=Rs.24,200.$

$\therefore$ $C.I.=A-P=Rs.24,200-Rs.20,000=Rs.4200.$