- Rs. 2,772
- Rs. 2,007
- Rs. 2,273
- Rs. 2,121

Option 1 : Rs. 2,772

**Given:**

Ram invests Rs. 1200 at the start of each year.

Rate = 10%

**Formula used:**

A = P(1 + r/100)^{t}

Where A = Amount, P = Principal, r = Rate, t = Time

**Calculation:**

Total returns of first-year investment = 1200(1 + 10/100)^{2}

⇒ 1200(11/10)^{2}

⇒ 1200(121/100)

⇒ 121 × 12

⇒ Rs. 1,452

Total returns on second year investment = 1200(1 + 10/100)^{1}

⇒ Rs. 1,320

Total returns = Rs. 1,452 + Rs. 1,320

⇒ Rs. 2,772

**∴ The total investment at the end of 2 years is Rs. 2,772.**

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