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The amount on compound interest of 100 for 2 years at the rate of 10% per annum is
Question

The amount on compound interest of 100 for 2 years at the rate of 10% per annum is

A.

Rs 121

B.

Rs 221

C.

Rs 111.21

D.

Rs 121.21

Correct option is A

The compound interest formula is:

A = P(1 + R/100)ⁿ

where:

  • A is the final amount
  • P is the principal amount
  • R is the annual interest rate
  • n is the number of years

Substituting the given values:
A = 100(1 + 10/100)²A = 100(1.1)²A = 100 × 1.21A = 121

Thus, the correct option is A) Rs 121. 

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