Naresh deposited a sum of Rs. 10,000 at 10% rate of interest per annum, compounded annually. The total amount received by Naresh after 2 years is:

Question

Question

This question was previously asked in

RRB Group D 16 Sept 2022 Shift 1 Official Paper

Answer 1

Given:

Principal (P) = Rs. 10,000

Rate (R) = 10% per annum

Time (t) = 2 years

Concept Used:

Amount = \(P(1+\frac{r}{100})^t\)

Calculation:

⇒ Amount after 2 years = 10000 × \((1+\frac{10}{100})^2\)

= 10000 × \(\frac{110}{100}\times \frac{110}{100}\)

= 110 × 110 = Rs. 12,100

Therefore, the total amount received by Naresh after 2 years is Rs. 12,100.

Hence, the correct answer is option 4).