Quantitative Aptitude • Simple & Compound InterestMedium
What is the compound interest on ₹3,825 for 2 years at 20% per year, compounded annually?
A. ₹765
B. ₹1,683✓ Correct Answer
C. ₹1,530
D. ₹5,508
💡 Solution & Explanation
Year 1 interest = 20% of ₹3,825 = ₹765, so the amount becomes ₹4,590. Year 2 interest = 20% of ₹4,590 = ₹918. Total compound interest = ₹1,683. Simple interest would be only ₹1,530; the extra is interest earned on the first year's interest.
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