What will ₹1,700 amount to in 2 years at 10% per year compound interest, compounded annually?

💡 Solution & Explanation

Amount = principal × (1 + rate/100)². After year 1: ₹1,700 × 110/100 = ₹1,870. After year 2: ₹1,870 × 110/100 = ₹2,057. With simple interest it would be only ₹2,040; compounding also earns interest on the first year's interest.