Question

Rs. 50000 is deposited with the compound interest rate of 10% for 2 years. Then the interest earned is

• A. Rs.10200
• B. Rs.10500
• C. Rs.10600
• D. Rs.10100

Hint:

For 10% rate over 2 years, the effective compound interest rate is always 21%. \[ 21\% \text{ of } 50000 = 0.21 \times 50000 = 10500 \]

Answer 1

The Correct Option is B