Accumulated sum at the end of 5 years, if Rs. 10000 is invested now at 10% interest per annum on a compound basis is Rs ?
Correct answer: B. 16105
- A. 15000
- B. 16105
- C. 18105
- D. 12500
Explanation
For compound interest, the accumulated amount is P(1+i)^n = 10000(1.10)^5 = approximately Rs. 16,105. Simple interest would give only Rs. 15,000, which is the tempting distractor.
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