An amount of ₹10,000 is invested at a compound interest rate of 8% per annum for a period of 2 years. What will be the total amount (principal + interest) received at the end of the 2-year period?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹11,664.
Use the compound interest formula:
A = P(1 + r/100)n
Where:
- P = 10000
- r = 8%
- n = 2
A = 10000(1 + 8/100)2
= 10000(1.08)2
= 10000 × 1.1664 = 11664
Therefore, the total amount received after 2 years is ₹11,664.