Find the compound interest (in ₹) obtained on a sum of ₹1,900 at 5% per annum in 2 years, if the interest is compounded annually.

Principal = ₹1900

Rate = 5% per annum

Time = 2 years

Amount formula:

$A=P\left(1+\frac{R}{100}\right)^n$

$A=1900\left(1+\frac{5}{100}\right)^2$

$=1900(1.05)^2$

$=1900 \times 1.1025$

$=2094.75$

Compound Interest = Amount $-$ Principal

$=2094.75-1900$

$=194.75$

$\therefore$ Correct Answer: ₹194.75