Multiple choice

Find the sum of simple interest and compound interest on Rs. $10,000$ for $2$ years, compounded annually at $10\%$ per annum both exclusively.

  1. $4200$
  2. $4000$
  3. $4100$
  4. $4500$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

SI = 10000 * 0.1 * 2 = 2000. CI = 10000 * (1.1^2 - 1) = 10000 * 0.21 = 2100. Sum = 2000 + 2100 = 4100.

AI explanation

We calculate the simple interest and compound interest separately on Rs. 10000 at 10% for 2 years. The simple interest is calculated as 10000 multiplied by 10 multiplied by 2, divided by 100, which gives 2000. For the compound interest, the amount is 10000 multiplied by 1.1 squared, or 12100, making the compound interest 2100. Adding the two interests together, 2000 plus 2100 gives a total sum of 4100.

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