Find Compound Interest on ₹11,000 in 2 years at 4% p.a., interest compounded yearly.

Correct option is A

Given:

Principal(P) = ₹11,000

time(t) = 2 years 

Rate(r) = 4% p.a.

Formula Used:

​$$CI = P \left(1 + \frac{r}{100}\right)^t-P$$​​

Solution:

$$CI = 11,000 \left(1 + \frac{4}{100}\right)^2-11,000$$ 

$$= 11,000 \left(1 + 0.04\right)^2-11,00$$ 

 $$= 11,000 \times (1.04)^2-11,000$$ 

$$= 11,000 \times 1.0816-11,000$$ 

$$= 11,897.6-11,000$$ 

$$\text{CI} =₹ 897.6$$ 

Thus the correct answer is (A)