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Question

Find the compound interest on Rs. 20,000 for 2 years, compounded annually at 10% per annum.
  1. 4200
  2. 4300
  3. 4400
  4. 4500

A
4300
B
4400
C
4500
D
4200
Solution
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A=P(1+R100)T

A=20000×(1+10100)2

A=20000×121100

A=Rs.24,200.

C.I.=AP=Rs.24,200Rs.20,000=Rs.4200.

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