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easyQ. No. 6809-what-will-be-the-amount-on-rs-2000-at-20-compound-interest-for-2-years

What will be the amount on Rs.2000 at 20% compound interest for 2 years?

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This Profit and Loss question develops correct identification of cost price, selling price, marked price, discount and the relevant percentage base in “What will be the amount on Rs.2000 at 20% compound interest for 2 years?”. The worked explanation retains the original numerical relationship, verifies 2880, and distinguishes common traps such as reversing CP and SP, adding successive rates or confusing discount with loss. It is designed for SSC, Railway, Banking, State examinations and other quantitative aptitude tests where accurate interpretation must accompany fast calculation.

A3000
B3100
C2800
D2880
Correct Answer: 2880Your Answer: D

Explanation

After comparing cost and selling values, the result is 2880. The question-specific working supplied in the record is: This compound interest solved example uses the step-by-step amount formula A = P(1 + R/100)^n, a fast shortcut trick for annual compounding. Substituting P = 2000, R = 20, and n = 2 gives A = 2000(1.20)^2. Since 1.20 squared equals 1.44, the amount becomes 2000 × 1.44 = ₹2880. This amount includes ₹2000 principal and ₹880 compound interest. Therefore, ₹2880 is correct, matching option B.. The distractors 3000, 3100, 2800 can result from interchanging cost price and selling price, treating discount as loss, adding successive rates, ignoring quantity, or rounding before the final step. This method preserves the numerical relationships in the stem and develops formula selection, percentage-base recognition and option elimination for SSC, Railway, Banking and other competitive aptitude examinations.

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FAQ

Profit and Loss FAQs

Common questions and clear answers for this topic.

Which method applies to this question?

Profit = SP − CP, Loss = CP − SP, and the percentage is calculated on cost price.

What is the verified answer?

2880, option D.

Which percentage base is most important?

Profit or loss percent is based on cost price, while discount is based on marked price.

How can the answer be checked?

Reverse the percentage relation or assume a base of 100 and reconstruct the final value.

What is Profit and Loss in mathematics and what are the basic terms?

Profit and Loss is a key Quantitative Aptitude topic in SSC CGL, IBPS Bank PO, SBI PO, CAT, and Railway exams. Basic terms: Cost Price (CP) - price at which an item is purchased. Selling Price (SP) - price at which it is sold. Profit = SP - CP (when SP > CP). Loss = CP - SP (when CP > SP). Profit% = (Profit/CP) x 100. Loss% = (Loss/CP) x 100.

What is the difference between Marked Price, Selling Price, and Discount?

Marked Price (MP) is the price printed on the item before discount. Discount = MP - SP. Discount% = (Discount/MP) x 100. SP = MP x (100-Discount%)/100. If a shopkeeper marks up by 40% and gives 20% discount: SP = CP x 1.40 x 0.80 = 1.12CP = 12% profit. Profit% and Loss% are always calculated on Cost Price unless specified otherwise.

Same Topic MCQs

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Find the compound interest on Rs.1000 at 20% for 2 years.Find the compound interest on Rs.4000 at 10% for 3 years.What is the amount on Rs.1200 at 10% compound interest for 2 years?