## The compound interest on Rs. 10000 at 4% per annum for two years compounded annually is A. Rs.1000 B. Rs. 816 C. Rs. 6

Question

The compound interest on Rs. 10000 at 4% per annum for two years compounded annually is

A. Rs.1000
B. Rs. 816
C. Rs. 628
D. Rs. 681

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4 weeks 2021-08-14T20:55:15+00:00 2 Answers 0 views 0

1. 10,000 in 2 years at 4% per annum, the interest being compounded half-yearly. Explanation: Principal = Rs. 10000; Rate = 2% per half-year; Time = 2 years = 4 half-years.

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## Given :

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• Principal = 10000
• Rate = 4% p.a.
• Time = 2 years

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## ToFind:

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• Compound Interest

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## Formula:

⠀⠀⠀⠀⠀⠀⠀⠀ P = initial principal balance

r = interest rate

n = number of times interest applied per time period

n = number of times interest applied per time periodt = number of time periods elapsed

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## Solution:

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P = 10000

R = 4% p.a.

N = 2 years         