Question 25
EasyOriginal questionArjun deposits ₹10,000 at 10% per annum compound interest, compounded annually. What will the amount be after 2 years?
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
After year 1: ₹10,000 + 10% = ₹11,000.
After year 2: ₹11,000 + 10% of ₹11,000 = ₹11,000 + ₹1,100 = ₹12,100.
Worth noting
₹12,000 is the simple-interest amount; compound interest charges the second year's 10% on ₹11,000, not ₹10,000. ₹2,100 is the interest, not the amount.
- Concept
- Amount at compound interest for 2 years
- Typical timeTypical
- 35 s
- Your timeYours
- —
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