CI on ₹2000 for 1 year at 10% p.a. is:
Show answer & explanation
Correct answer: A
Explanation
Given:
Principal (P) = ₹2000
Interest Rate (r) = 10% per annum
Time (n) = 1 year
According to the formula:
Amount (A) = P(1 + r/100)ⁿ
Compound Interest = A − P
A = 2000(1 + 10/100)¹
= 2000 × 1.1
= 2200
Compound Interest = 2200 − 2000 = ₹200