Bipin wants to invest Rs 1,00,000 for 2 years. Calculate the compound interest for annual, semi-annual, and quarterly compounding at 10% per annum. Which option yields the most interest?

Here's the solution to question 2:

Given:
Principal $(P) = \text{Rs } 1,00,000$
Time $(T) = 2 \text{ years}$
Rate $(R) = 10\% \text{ per annum}$

The formula for compound amount is $A = P\left(1 + \frac{R}{n \times 100}\right)^{nT}$, where $n$ is the number of times interest is compounded per year.

a) Which option among the three alternatives helps Bipin to get more interest? Write it.

Step 1: Calculate the compound amount and interest for annual compounding ($n=1$).

$$A_{\text{annual}} = P\left(1 + \frac{R}{100}\right)^T$$ $$A_{\text{annual}} = 100000\left(1 + \frac{10}{100}\right)^2$$ $$A_{\text{annual}} = 100000(1.1)^2$$ $$A_{\text{annual}} = 100000(1.21) = \text{Rs } 121000$$

Interest $I_{\text{