Multiple choice

The compound interest of Rs. 1,000 at the rate of 10% will be Rs. 210 in

  1. one year

  2. two years

  3. three years

  4. four years
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For 10% interest, the amount after 2 years is 1000 * (1.1)^2 = 1210. The compound interest is 1210 - 1000 = 210.

AI explanation

We must find the time required for the compound interest to equal Rs. 210. Since the interest for the first year is 10% of Rs. 1000, which is Rs. 100, we add this to the principal to get a new principal of Rs. 1100 for the second year. The interest for the second year is 10% of Rs. 1100, which equals Rs. 110, bringing the total compound interest to Rs. 210. This shows the time is two years.

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