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Harpreet deposits ₹25000 in a bank that pays 4% per annum compounded annually. How much interest (in ₹) does she earn in 2 years?

Competition practiceSimple & Compound Interest
  • A2040
  • B2000
  • C2080
  • D1960

Step-by-Step Solution

Amount = , so the compound interest = 27040 − 25000 = ₹2040.
Answer: A) 2040

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