What is the compound interest on Rs 4000 at 10% per annum for 2 years, compounded annually?
Answer and explanation
Correct answer: B. Rs 840
- Step 1: Amount = P(1 + R/100)^2 = 4000 x 1.1^2 = 4840.
- Step 2: CI = Amount - P = 840.
Answer
Rs 840.
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