Rs. 7205 are invested in a scheme of compound interest (compounded annually). If the rate of interest is 20% per annum, then what is the interest earned (in Rs) in 1 year?
Answer & explanation
Correct answer: option 3
Compound interest in 1 year = Simple interest for 1 year
= $\frac{Principal\;\times\;rate}{100}$
= $\frac{7205\;\times\;20}{100}$ = Rs. 1441