Quantitative Aptitude • Simple & Compound InterestMedium
What will ₹3,250 amount to in 2 years at 20% per year compound interest, compounded annually?
A. ₹3,900
B. ₹1,430
C. ₹4,680✓ Correct Answer
D. ₹4,550
💡 Solution & Explanation
Amount = principal × (1 + rate/100)². After year 1: ₹3,250 × 120/100 = ₹3,900. After year 2: ₹3,900 × 120/100 = ₹4,680. With simple interest it would be only ₹4,550; compounding also earns interest on the first year's interest.
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