Q1. In an error clinic, Imran writes: "Rs 1000 at 10 percent for 3 years gives 30 percent compound increase, so amount is Rs 1300." What is the named trap?
Explanation
Imran’s answer is a classic transfer error. He treats compound growth like simple interest by adding 10 percent three times on the original base. A year table would show the base should become Rs 1100 and then Rs 1210.
