Multiple choice

What is the amount after 2 years if Rs. 500 is invested at 10% per annum compound interest, compounded annually?

  1. 26

  2. 605

  3. 347

  4. 357

  5. 467
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The amount is calculated using the formula A = P(1 + r/100)^n. Substituting P = 500, r = 10, and n = 2 gives A = 500 * (1.1)^2 = 500 * 1.21 = 605.

AI explanation

Using the compound amount formula, the total amount equals the principal multiplied by 1 plus the rate raised to the number of years. Calculating 500 multiplied by 1.10 raised to the power of 2 yields 500 multiplied by 1.21, which equals 605. The final amount is Rs. 605.

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