Multiple choice

A sum amounts to Rs.1210 in 2 years when invested at compound interest. If principal is Rs.1000, then what is the rate of interest (in %)?

  1. 12%

  2. 15%

  3. 20%

  4. 10%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

For compound interest, Amount = Principal(1 + r/100)^t. Here: 1210 = 1000(1 + r/100)². So (1 + r/100)² = 1.21, giving 1 + r/100 = 1.1, so r = 10%. Verify: 1000 × 1.1² = 1000 × 1.21 = 1210.

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