Quantitative Aptitude • Simple & Compound InterestMedium
What will ₹2,150 amount to in 2 years at 20% per year compound interest, compounded annually?
A. ₹3,010
B. ₹946
C. ₹3,096✓ Correct Answer
D. ₹2,580
💡 Solution & Explanation
Amount = principal × (1 + rate/100)². After year 1: ₹2,150 × 120/100 = ₹2,580. After year 2: ₹2,580 × 120/100 = ₹3,096. With simple interest it would be only ₹3,010; compounding also earns interest on the first year's interest.
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