A sum of \10000$ is deposited for 2 years at $10\%$ p.a. compound interest, interest added yearly. Find the interest earned.
Answer and explanation
Correct answer: C. \$2100
- Step 1: Amount after 2 years .
- Step 2: Interest .
Answer
\$2100.
Why not the others: \$2000: it is the simple interest for two years. \$12100: it is the total amount, not the interest. \$1000: it is one year of interest only.
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