Given details are,
Simple interest [SI] = Rs 200
Rate [r] = 10 %
Time = 2 years
So, by using the formula,
Simple interest = P×T×R/100 P = [SI × 100]/ T×R
= [200 × 100] / 2 × 10
= 20000/20
= Rs 1000
Now,
Rate of compound interest = 10%
Time = 2years
By using the formula,
A = P [1 + R/100]^n
= 1000 [1 + 10/100]^2
= 1000 [110/100]^2
= Rs 1210
∴ Compound Interest = A – P = Rs 1210 – Rs 1000 = Rs 210
Correct Answer - Option 2 : Rs. 210
Given:
Principal = Rs. 1000
Time = 2 years
Rate of interest = 10%
Formula:
C.I = P × [[1 + r/100]n – 1]
Here,
P = Principal Amount
r = Rate of interest
n = Time in years
Calculation:
We know that -
C.I = P × [[1 + r/100]n – 1]
According to the question,
C.I = 1000 × [[1 + 10/100]2 – 1]
⇒ C.I = 1000 × [[1 + 1/10]2 – 1]
⇒ C.I = 1000 × [[11/10]2 – 1]
⇒ C.I = 1000 × [121/100 – 1]
⇒ C.I = 1000 × [[121 – 100]/100]
⇒ C.I = 1000 × [21/100]
⇒ P = 210
∴ The Interest Amount will be Rs. 210.