The compound interest on Rs $20000$ at $10\%$ per annum for $2$ years is:

Question

The compound interest on Rs $20000$ at $10\%$ per annum for $2$ years is:

Option A

Rs 4000

Option B

Rs 4100

Option C — Correct answer

Rs 4200

Correct choice.

Option D

Rs 4400

Explanation

Amount $=20000\times1.1^2=24200$. So CI $=4200$.

Chapter Mock 5: Simple Interest and Compound Interest