Question

Rs. 2100 is lent at compound interest of 5% per annum for 2 years. Find the amount after two years.

• A. Rs. 2300
• B. Rs. 2315.25
• C. Rs. 2310
• D. None of these

Answer 1

The correct option is B Rs. 2315.25

Here P = 2100, R = 5%, T = 2 years.

$A=P{[1+\frac{R}{100}]}^T=2100{[1+\frac{5}{100}]}^2$

$=2100\times \frac{21}{20}\times \frac{21}{20}=Rs.2315.25$