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The compound interest on ₹5,000 at 10% p.a. for 2 years compounded annually is:

A₹1,000
B₹1,050
C₹1,100
D₹1,200
Answer & Solution
Correct answer: B. ₹1,050
1. A = P(1 + R/100)ⁿ = 5000 × 1.10² = 5000 × 1.21 = ₹6,050. 2. CI = A − P = 6050 − 5000. 3. = ₹1,050. _Source: jkchrome SI-CI QB, p.2 — basic CI formula_
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