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### Question

An amount P is invested for 1 year @2% p.a. The simple interest is Rs. 3000. What would be the compound interest on the same amount, at the same rate and for the same time, compounded annually?

**A**

Rs. 3000.

**B**

Rs. 3100.

**C**

Rs. 2900.

**D**

Rs. 3200.

**Soln.**

**Ans: a**

The compound interest and simple interest are exactly same for a period of 1 year if P and r are always same.