Sameera pays ₹20000 into a scheme on 1 April 2024 and another ₹20000 into the same scheme on 1 April 2025. The scheme pays 10% per annum compounded annually. Her balance on 1 April 2026 (in ₹) is:

The first deposit is invested for 2 years and grows to $20000\times 1.$$10^2$ = ₹24200; the second is invested for 1 year only and grows to ₹22000. Together ₹46200. (₹48400 treats both deposits as though they had been made in 2024, and ₹44000 gives the whole ₹40000 just one year's growth. ₹46000 is what plain simple interest would return — ₹4000 on the first deposit and ₹2000 on the second — and misses the ₹200 earned in the second year on the first year's interest.)