Q. |
A certain sum is invested at 10% p.a. for 2 years at compound interest. What will be the net percentage return on the sum invested? |
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A. 21% |
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B. 20.5% |
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C. 22% |
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D. 20% |
Compound interest is calculated on the amount.
Hence its is a case of successive change and we can apply AB Method.
10 + 10 + 10*10/100 = 21
21% return on investment