What will be the future value of Rs. 100,000 invested for two years at an annual compound interest rate of 10%?
Correct answer: D. Rs. 121,000
- A. Rs. 110,000
- B. Rs. 120,000
- C. Rs. 125,000
- D. Rs. 121,000
Explanation
The future value is calculated as Rs. 100,000 multiplied by 1.10 squared. This produces Rs. 121,000, because interest is compounded in both years.
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