Multiple choice

Rs. $2,000$ is invested at annual rate of interest of $10\%$. What is the amount after two years if compounding is done annually?

  1. $2,420$
  2. $2,431$
  3. $2,436.80$
  4. $2,440.58$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Amount = P * (1 + r/100)^n = 2000 * (1 + 0.1)^2 = 2000 * 1.21 = 2420.

AI explanation

Using the compound interest formula A = P(1 + R/100)^T, we calculate the amount as 2000 multiplied by (1 + 10/100) squared. This simplifies to 2000 multiplied by 1.21, which equals Rs. 2420.

Keep practicing — related questions