What is the compound interest on a sum of Rs.7200 for 
years at 20% pa, interest compounded yearly (nearest to an integer) ?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is 4 ie Rs.3997.
7200 → 20% → 20% → 8%
1440 1728
7200 + 3168 = 10368
= 8% × 10368
= 829
= 1440 + 1728 + 829 = 3997