alleryA salary grows by 10% per year. After 2 years, what fraction of the original is the salary?
A$1.20$
B$1.10$
C$1.21$
D$1.25$
Answer & Solution
Correct answer: C. $1.21$
**Compound growth:** (1.10)² = 1.21. Naive addition (1.20) is the trap.
CAT uses this on multi-year growth and compound interest problems.
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