two years ago , ram put $ 1000 into a savings account . at the end of the first year , his account had accrued $ 100 in interest bringing his total balance to $ 1100 . 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 $ 1000 ?  Choose the correct choice from the following options:
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