A sum of ₹900 is invested at compound interest (compounded annually) for 2 years. If the rate of interest is 10% per annum, then what will be the amount?
Answer & explanation
Correct answer: option 2
The Formula that we used here is -
Amount = P$(1 \;+\; \frac{R}{100})^t$
= 900 [ 1 + \(\frac{10}{100}\)]²
= 900 [ \(\frac{11}{10}\)]²
= Rs. 1089