Two years ago, Ram put $1,000 into a savings account. At the end of the first year, his account had accrued $100 in interest bringing his total balance to $1,100. The next year, his account balance increased by 20%. At the end of the two years, by what percent has Sam's account balance increased from his initial deposit of $1,000 ? Pick one:
A) 40 %
B) 25 %
C) 35 %
D) 30 %
E) 32 %

Rationale: "investment 1000 dollars 1 st year total gained = 100 total amount end of first year = 1100 second year account increased by 20 % = 1100 * 0.2 = 220 therefore total amount by second year end = 1320 so total percentage increase in money = ( 1320 - 1000 ) * 100 / 1000 = 32 % correct answer e = 32 %"
Answer: E