Multiple choice

The compound interest on $Rs. 100$ for the first year is $5\ p.c.$ and second year is $6\ p.c.$ What is the interest after two years?

  1. $Rs. 11$
  2. $Rs. 11.30\ $
  3. $Rs. 111.30$
  4. $Rs.10.30\ $
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Interest for year 1 = 100 * 0.05 = 5. Amount after year 1 = 105. Interest for year 2 = 105 * 0.06 = 6.30. Total interest = 5 + 6.30 = 11.30.

AI explanation

Using the successive compound interest method, the total amount is found by adding the interest percentages to the principal, calculated as 100 multiplied by 1.05 multiplied by 1.06. The calculation gives a final amount of 111.30. Subtracting the original principal of 100 from this amount leaves an interest of 11.30.

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