Quantitative Aptitude • Simple & Compound InterestMedium
What will ₹32,400 amount to in 2 years at 5% per year compound interest, compounded annually?
A. ₹34,020
B. ₹35,721✓ Correct Answer
C. ₹35,640
D. ₹3,321
💡 Solution & Explanation
Amount = principal × (1 + rate/100)². After year 1: ₹32,400 × 105/100 = ₹34,020. After year 2: ₹34,020 × 105/100 = ₹35,721. With simple interest it would be only ₹35,640; compounding also earns interest on the first year's interest.
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