Q
Compound interest on Rs. 10,000 at 10% per annum for 2 years (compounded annually) is:
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A
Rs. 1,100
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B
Rs. 2,200
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C
Rs. 2,100
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D
Rs. 2,000
Correct Answer:
C. Rs. 2,100
Explanation:
10,000 × 1.1² − 10,000 = 2,100. Rs. 2,000 is the simple interest – a common trap.
