The amount on a sum of ₹2,800 at the rate of 5% per annum compound interest, compounded annually, in 2 years will be:

Correct option is B

Given
Principal (P) = ₹2,800
Rate (R) = 5% per annum
Time (T) = 2 years

Formula Used
Amount = P × $$(1 + \frac{R}{100})^T$$​​
Solution
Amount = 2800 × $$(1 + \frac{5}{100})^2$$​​

Amount = 2800 × $$(\frac{105}{100})^2$$​

Amount = 2800 × $$\frac{21}{20} \times \frac{21}{20}$$​

Amount = 2800 × $$\frac{441}{400}$$​

Amount = 7 × 441 = 3087
Final Answer
So the correct answer is (b)