What will be the compound interest earne

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Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Compound Interest

Question:

What will be the compound interest earned on an amount of Rs. 12000 at 10% p.a. in two years?

Options:

Rs. 2400

Rs. 2420

Rs. 2500

Rs. 2520

Correct Answer:

Rs. 2520

Explanation:

Total rate of interest for 2 years = 10% + 10% + \(\frac{10\;×\;10}{100}\)% = 21%

C.I. for 2 years = 12000 × 21% = Rs.2520