Multiple choice

A person invested Rs.20000 in compound interest at 10% per annum for 2 years. If he invested the amount received as interest after two years in compound interest at the same rate of interest for the same period, then find the amount received finally.

  1. 2389

  2. 3467

  3. 5082

  4. 3412

  5. 5623
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Interest after 2 years at 10% CI on 20000: 20000 * (1.1^2 - 1) = 4200. Now invest 4200 at 10% CI for 2 years: 4200 * (1.1^2) = 4200 * 1.21 = 5082.

AI explanation

The compound interest earned on 20000 at 10 percent for two years is 20000 multiplied by 0.10 squared divided by 100, plus 20000 multiplied by 0.20, totaling 4200. Investing this 4200 at 10 percent compound interest for another two years yields an amount of 4200 multiplied by 1.21, which equals 5082. The final amount received is Rs. 5082.

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