Multiple choice

What amount will a man got for Rs. 54000 at the rate of 10% per annum compound interest in two years?

  1. Rs. 65340

  2. Rs. 65430

  3. Rs. 56430

  4. Rs. 65403

  5. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The correct answer is A. Using compound interest formula: A = P(1 + r)^n = 54000(1 + 0.10)^2 = 54000(1.1)^2 = 54000(1.21) = Rs. 65,340. Options B, C, and D are common calculation errors - mixing up digits, wrong formula application, or arithmetic mistakes. Compound interest means earning interest on both principal and accumulated interest, unlike simple interest.

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