Quantitative Aptitude • Simple & Compound InterestMedium
What will ₹4,325 amount to in 2 years at 20% per year compound interest, compounded annually?
A. ₹1,903
B. ₹5,190
C. ₹6,228✓ Correct Answer
D. ₹6,055
💡 Solution & Explanation
Amount = principal × (1 + rate/100)². After year 1: ₹4,325 × 120/100 = ₹5,190. After year 2: ₹5,190 × 120/100 = ₹6,228. With simple interest it would be only ₹6,055; compounding also earns interest on the first year's interest.
More Quantitative Aptitude Simple & Compound Interest questions
- What is the compound interest on ₹18,600 for 2 years at 10% per year, compounded annually?
- A sum of money amounts to ₹8,820 in 2 years and to ₹9,261 in 3 years at compound interest. What is the rate…
- What is the compound interest on ₹4,250 for 2 years at 20% per year, compounded annually?
- A sum of ₹28,000 becomes ₹33,040 in 3 years at simple interest. What is the rate of interest per year?
- In how many years will ₹31,000 earn a simple interest of ₹3,720 at 6% per year?