Multiple choice

Mr. Raman deposit Rs. 2000 today in a bank which pays 10% interest compounded annually, How much will the deposit grow to after 4 years?

  1. Rs. 2930

  2. Rs. 2935

  3. Rs. 2928

  4. Rs. 2926
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Using compound interest formula A = P(1 + r)^n, where P=2000, r=0.10, n=4: A = 2000 × (1.10)^4 = 2000 × 1.4641 = 2928.20, which rounds to Rs. 2928. Compound interest means interest is earned on both principal and accumulated interest.

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