# What is the compound interest on a sum of ` 7200 for years at 20% p.A.

| What is the compound interest on a sum of ` 7200 for years at 20% p.A. interest compounded yearly (nearest to an integer)?

A. ` 3,997

B. ` 4,290

C. ` 3,960

D. ` 4,205

### Right Answer is: A

#### SOLUTION

Total sum

C.I. for 1^{st} year at rate of 20% = 1440

C.I. for 2^{nd} year at rate of 20% = 1440+288

Total C.I. in two years = 1440 + 1440 + 288 = 3168

Total amount = 7200 + 3168 = 10368

C.I. in years at 20%

Total C.I. in years = 3168 + 829 = ₹3997

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What is the compound interest on a sum of ` 7200 for years at 20% p.A.