Quantitative Aptitude • Simple & Compound InterestMedium
What is the compound interest on ₹18,600 for 2 years at 10% per year, compounded annually?
A. ₹1,860
B. ₹22,506
C. ₹3,720
D. ₹3,906✓ Correct Answer
💡 Solution & Explanation
Year 1 interest = 10% of ₹18,600 = ₹1,860, so the amount becomes ₹20,460. Year 2 interest = 10% of ₹20,460 = ₹2,046. Total compound interest = ₹3,906. Simple interest would be only ₹3,720; the extra is interest earned on the first year's interest.
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