The compound interest on ₹ 2,000 at 5% annum, compounded yearly for 2 years is:
Answer & explanation
Correct answer: option 3
CI at 5% annum, compounded yearly for 2 years is = 10.25% of principal.
Principal = 2000
So, CI = ( 2,000 × 10.25)/100 = 205 rs