These are sample practice MCQs created for exam preparation. These are NOT official exam questions.
If $1,000 is invested at 10% annual interest compounded annually, what will be the value after 2 years?
Question:
If $1,000 is invested at 10% annual interest compounded annually, what will be the value after 2 years?
If $1,000 is invested at 10% annual interest compounded annually, what will be the value after 2 years?
Options
Answer: (C) $1,210
Explanation:
After 1 year: 1,000 × 1.10 = $1,100. After 2 years: 1,100 × 1.10 = $1,210. Or using formula: 1,000(1.10)² = 1,000 × 1.21 = $1,210.
Explanation:
After 1 year: 1,000 × 1.10 = $1,100. After 2 years: 1,100 × 1.10 = $1,210. Or using formula: 1,000(1.10)² = 1,000 × 1.21 = $1,210.
👉 Want AI explanation? Open in MCQ App
Recommended articles
- Hppsc Previous Year Questions (2021–2025) Free Practice — Practice HPPSC Himachal Pradesh PSC Prelims Paper 1 Previous Year Questions (2021–2025) online at UPSC Quizroom. Bilingual Hindi-English, AI explanations,…
- Daily Upsc Mcq Strategy — '); animation: float 20s ease-in-out infinite; pointer-events: none; } @keyframes float { 0%, 100% { transform: translate(0%, 0%) rotate(0deg); } 50% {…
- Free Cat Previous Year Questions Guide — Master CAT 2025 with free previous year questions. Practice 1000+ PYQs, mock tests, and detailed solutions. Complete guide to CAT preparation using past…