Q20. What will be the compound interest on ₹10,000 for 2 years at 10% per annum compounded annually?
a) ₹2,000
b) ₹2,100
c) ₹2,200
d) ₹2,250
Show Answer
Correct Answer: b) ₹2,100
Explanation: Amount ($\text{A}$) = $\text{P}(1 + \text{R}/100)^n = 10000 \times (1 + 10/100)^2 = 10000 \times (11/10) \times (11/10) = 10000 \times 1.21 = ₹12,100$. Compound Interest = $\text{A} – \text{P} = 12100 – 10000 = ₹2,100$.