If Rs. 10,000 earns compound interest at 10 percent per year for two years, what is the maturity value?
Correct answer: D. Rs. 12,100
- A. Rs. 11,000
- B. Rs. 11,100
- C. Rs. 12,000
- D. Rs. 12,100
Explanation
The amount after two years is calculated as Rs. 10,000 × 1.10 × 1.10, which equals Rs. 12,100. The option of Rs. 12,000 results from applying simple interest rather than compound interest.
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