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

Correct option is D

Given

principle =11000

time=2 yrs

rate=4%

Formula used 

A= $$P(1+\frac{r}{100})^t$$​​

​Solution​

A is the amount obtained

​$$A=11000(1+\frac{4}{100})^2=11,897.6 Rs$$​​

interest=amount-principle=11897.6-11000 = 897.6 Rs

The compound interest obtained is 897.6 Rs.