Question 32
EasyOriginal questionGurpreet deposits ₹18,000 at 5% per annum, 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: ₹18,000 + ₹900 = ₹18,900.
After year 2: ₹18,900 + 5% of ₹18,900 = ₹18,900 + ₹945 = ₹19,845.
Worth noting
₹19,800 is the simple-interest amount. ₹1,845 is the interest, not the amount.
- Concept
- Amount at compound interest for 2 years
- Typical timeTypical
- 40 s
- Your timeYours
- —
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