Find the compound interest on ₹5,50,000 at 7% per annum for 2 years, compounded annually.
Explanation:
Interest for 1st year = 7% of 5,50,000 = 38,500
Interest for 2nd year = 7% more than 38,500 = 41,195
∴ Total interest for 2 years = 41,195 + 38,500 = 79,695
Hence, option (a).
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