What will be the compound interest on Rs 14,000 for 2 years at the rate of 10 % per annum compound annually?
Answer & explanation
Correct answer: option 4
Principal = Rs 14000
Time = 2 year
Rate = 10%
Rate = \(\frac{1}{10}\)
Priincipal : AMOUNT
10 : 11
10 : 11
100 : 121
Principal after two year is Rs 100 and amount become 121 Rs.
Compound Interest = Amount - Principal
= 121 - 100 =21 Rs
ATQ
100 Parts = 14000
1 part = 140
21 part = Rs 21× 140
= Rs 2940