Multiple choice

The compound interest on Rs. 10 @ 10% per annum for two years will be ________.

  1. Rs. 2

  2. Rs. 2.10

  3. Rs. 2.20

  4. Rs. 2.30
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Compound interest = P * ((1 + r/100)^n - 1) = 10 * ((1 + 0.1)^2 - 1) = 10 * (1.21 - 1) = 10 * 0.21 = 2.10.

AI explanation

Using the compound interest formula CI = P * (1 + R/100)^T - P, we substitute the principal of 10, rate of 10%, and time of 2 years. The calculation is 10 * (1.1)^2 - 10, which equals 10 * 1.21 - 10. The compound interest earned is 12.1 - 10, resulting in Rs. 2.10.

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