Q.A person deposited ₹100 in a bank and received ₹121 as compound amount after 2 years. The annual interest rate was ____ %.

Let the annual compound interest rate be \( r\% \) \[ \therefore\ 100\left(1 + \frac{r}{100}\right)^2 = 121 \] Or, \[ \left(1 + \frac{r}{100}\right)^2 = \frac{121}{100} \] Or, \[ 1 + \frac{r}{100} = \frac{11}{10} \] Or, \[ \frac{r}{100} = \frac{11}{10} - 1 \] Or, \[ \frac{r}{100} = \frac{1}{10} \] So, \[ r = 10 \] \(\therefore\) The annual compound interest rate is 10%.
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