Mathematics for FinancePYQ May 19 Series IIQuestion 1287 of 512
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10,000\displaystyle 10,000 is invested at annual rate of interest of 10%\displaystyle 10\% p.a. The amount after two years at annual compounding is

Options

A12100\displaystyle 12100
B12100\displaystyle 12100
C12110\displaystyle 12110
DNone of these
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Correct Answer

✅ Option a — 12100\displaystyle 12100

All Options:

  • A12100\displaystyle 12100
  • B12100\displaystyle 12100
  • C12110\displaystyle 12110
  • DNone of these

Detailed Solution & Explanation

**Derivation of Accumulated Amount** Given: - Principal (P\displaystyle P) = Rs. 10,000\displaystyle \text{Rs. }10,000 - Rate (r\displaystyle r) = 10%\displaystyle 10\% per annum compounded annually - Time (t\displaystyle t) = 2\displaystyle 2 years **Step 1: Calculate the Amount (A\displaystyle A)** A=P(1+r)tA = P(1 + r)^t A=10000(1+0.10)2A = 10000(1 + 0.10)^2 A=10000(1.10)2A = 10000(1.10)^2 A=10000×1.21=Rs. 12,100A = 10000 \times 1.21 = \text{Rs. }12,100 Hence, **Option A** is the correct answer.

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