1.
What is the compound interest on ₹10000 at 10% per annum for 2 years, compounded annually?
A
₹2000
B
₹2100
C
₹1900
D
₹2200
Answer and explanation
Correct Answer: B — ₹2100
A = P(1 + R/100)^T = 10000 × (1.1)² = 10000 × 1.21 = ₹12100. CI = 12100 – 10000 = ₹2100.