The compound interest on ₹10,000 at 5% per annum for 2 years (compounded…

2025

The compound interest on ₹10,000 at 5% per annum for 2 years (compounded annually) is:

  1. A.

    ₹1000

  2. B.

    ₹1025

  3. C.

    ₹1050

  4. D.

    ₹1100

Attempted by 16 students.

Show answer & explanation

Correct answer: B

Compound interest for 2 years at 5% is 10000 x [(1.05)^2 - 1] = 10000 x 0.1025 = Rs. 1025.

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