What would be the interest accrued in two years if Rs. 1200 is investe

1.	What would be the interest accrued in two years if Rs. 1200 is invested @ 10% interest, compounded annually?1. Rs. 2642. Rs. 2463. Rs. 2404. Rs. 252
Answer» Correct Answer - Option 4 : Rs. 252 GIVEN: Principal (P)= Rs1200, Rate(R) = 10%, Time(N) = 2 years FORMULA USED: A = P (1 + R/100)^N CALCULATION: A = P (1 + R/100)^N ⇒ A = 1200(1 + 10/100)² ⇒ A = 1200(1 + 1/10)¹⁰ ⇒ A = 1200 × 11/10 × 11/10 ⇒ A = 12 × 121 ⇒ A = Rs1452 ⇒ Amount = Principle + Interest ⇒ Interest = Amount - Principle ⇒ Interest =Rs1452 - Rs1200 ⇒ Interest = Rs252 ∴ Interest on sum of Rs1200 at the rate of 10% for 2 years = Rs252

What would be the interest accrued in two years if Rs. 1200 is invested @ 10% interest, compounded annually?1. Rs. 2642. Rs. 2463. Rs. 2404. Rs. 252

Answer» Correct Answer - Option 4 : Rs. 252

GIVEN:

Principal (P)= Rs1200, Rate(R) = 10%, Time(N) = 2 years

FORMULA USED:

A = P (1 + R/100)^N

CALCULATION:

A = P (1 + R/100)^N

⇒ A = 1200(1 + 10/100)²

⇒ A = 1200(1 + 1/10)¹⁰

⇒ A = 1200 × 11/10 × 11/10

⇒ A = 12 × 121

⇒ A = Rs1452

⇒ Amount = Principle + Interest

⇒ Interest = Amount - Principle

⇒ Interest =Rs1452 - Rs1200

⇒ Interest = Rs252

∴ Interest on sum of Rs1200 at the rate of 10% for 2 years = Rs252

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What would be the interest accrued in two years if Rs. 1200 is invested @ 10% interest, compounded annually?1. Rs. 2642. Rs. 2463. Rs. 2404. Rs. 252

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