Multiple choice

Find the amount and the compound interest on INR $10000$ at $5$% per annum, for $2$ years compounded annually.

  1. $1020$
  2. $1025$
  3. $1022$
  4. $2025$
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B Correct answer
AI explanation

Using the compound interest formula, the amount equals 10000 multiplied by the quantity 1 plus 0.05, all raised to the power of 2. This calculates to 10000 times 1.1025, giving a total amount of INR 11025. Subtracting the principal of 10000 leaves a compound interest of INR 1025.

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