In 2020, Sumit’s income was ₹21,000. He receives a 10% increase every year. What was his income in 2022?

Solution:

Initial income in 2020 = ₹21,000
Annual increase = 10%

Income grows by compound increase:

After 1 year (2021):
$ 21000 \times 1.1 = 23100 $

After 2 years (2022):
$ 23100 \times 1.1 = 25410 $

OR directly:
$ 21000 \times (1.1)^2 = 21000 \times 1.21 = 25410 $

Final Answer:

₹25,410 ✔️