#### If a man invests ₹12000 for two years at the rate of 10% per annum compound interest, then the compound interest earned by him at the end of two years is

(a) ₹ 2400

(b) ₹2520

(c) ₹2000

(d) ₹1800

**Solution:**

(b) ₹2520

Hint – 12000 [(1 + 10/100)^{2} – 1] . 1200 (121-100/100) = 12000 × 21/100

= ₹2520

#### Mr. Rao bought 1-year, ₹10000 certificate of deposit that paid interest at an annual rate of 8% compounded semi-annually. The interest received by him on maturity is

(a) ₹816

(b) ₹864

(c) ₹800

(d) ₹10816

**Solution:**

(a) ₹816

Hint – 10000 [(1 + 4/100)^{2} – 1] = 10000 (676-625/625)

= 10000 × 51/625 = ₹816

**More Solutions:**

- Find the population of the town at the end of two years.
- The present population of a town is 15625.
- The population of a city increase each year by 4%.
- The cost of a refrigerator is ₹ 9000.
- Dinesh purchased a scooter for ₹ 24000.
- What was the yearly produce of wheat two years ago?
- what was its value three years ago?
- Ahmed purchased an old scooter for ₹ 16000.
- Find the annual rate of growth of production of cars.