Multiple choice

Find the amount obtained by investing ,20,000 at 10% p.a. compound interest for two years, compounded annually.

  1. 22000

  2. 24000

  3. 26000

  4. 24200
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

For annual compound interest, amount = principal x (1 + rate)^time. Thus, amount = 20000 x (1.10)^2 = Rs. 24,200.

AI explanation

Using the compound interest formula, Amount equals Principal times (1 plus Rate divided by 100) raised to the number of years. Substituting the values gives 20000 times 1.10 squared, which is 20000 times 1.21. The final amount is 24200.

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