A sum of \5000$ is deposited for 2 years at $2\%$ p.a. compound interest, interest added yearly. Find the interest earned.
Answer and explanation
Correct answer: D. \$202
- Step 1: Amount after 2 years .
- Step 2: Interest .
Answer
\$202.
Why not the others: \$200: it is the simple interest for two years. \$5202: it is the total amount, not the interest. \$100: it is one year of interest only.
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