In how many years will the compound interest on Rs. 10000 at the rate of 10 percent per annum be Rs. 2100?

A4 years

B2.5 years

C2 years ✓ Correct

D3 years

Correct answer: (C) 2 years

Explanation

The interest reaches Rs. 2100 in 2 years.

Amount = P(1 + R/100)^n = 10000(1.1)^n.

After 1 year: 10000 x 1.1 = 11000, interest Rs. 1000.

After 2 years: 10000 x 1.21 = 12100, interest Rs. 2100.

So n = 2 years.

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