MasteryExams
Quantitative Aptitude • Simple & Compound InterestHard

What is the compound interest on ₹22,000 for 3 years at 10% per year, compounded annually?

A. ₹29,282
B. ₹4,620
C. ₹7,282✓ Correct Answer
D. ₹6,600

💡 Solution & Explanation

Each year adds 10% of the amount at the start of that year. Year 1: ₹22,000 → ₹24,200. Year 2: ₹24,200 → ₹26,620. Year 3: ₹26,620 → ₹29,282. Compound interest = ₹29,282 − ₹22,000 = ₹7,282, which is 33.1% of the principal. Simple interest for 3 years would be only 30%, ₹6,600.

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