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The question provided states:

**A deposit of Rs 600 increased by 5% annually as simple interest but after 2 years it is compounded annually at the same rate. The resulting deposit after 4 years will be approximately:**

Let's break this down step by step:

1. **First 2 years with simple interest:**
   - Initial principal (P) = Rs 600
   - Simple interest rate (R) = 5% per annum
   - Time for simple interest (T) = 2 years
   
   Simple interest formula:  
   \[
   SI = \frac{P \times R \times T}{100}
   \]
   Substituting the values:  
   \[
   SI = \frac{600 \times 5 \times 2}{100} = \frac{6000}{100} = 60 \, \text{Rs}
   \]
   So, after 2 years, the amount (A) becomes:  
   \[
   A = P + SI = 600 + 60 = 660 \, \text{Rs}
   \]

2. **Next 2 years with compound interest:**
   Now, Rs 660 is compounded annually at 5% for the next 2 years. The compound interest formula is:  
   \[
   A = P \left(1 + \frac{R}{100}\right)^T
   \]
   Substituting the values:
   \[
   A = 660 \left(1 + \frac{5}{100}\right)^2 = 660 \left(1.05\right)^2
   \]
   \[
   A = 660 \times 1.1025 = 727.65 \, \text{Rs}
   \]

So, the amount after 4 years is approximately **Rs 727**.

The correct option is **727**.

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Would you like any additional explanation or details on this?

Here are 5 related questions to expand your understanding:
1. How would the final amount change if the rate were 6% instead of 5%?
2. What would be the outcome if interest were compounded monthly instead of annually?
3. How is compound interest more beneficial than simple interest over long periods?
4. What is the impact of compounding frequency (monthly, quarterly) on the final amount?
5. Can you derive the formula for compound interest from first principles?

**Tip:** For longer periods, compound interest grows much faster than simple interest due to the effect of interest being calculated on previously earned interest.

A deposit of Rs 600 increased by 5% annually as simple interest but after 2 years it is compounded annually at the same rate. The resulting deposit after 4 years will be approximately:

Learn how to calculate the final deposit for a Rs 600 investment with a 5% annual interest rate, using simple interest for 2 years and then compound interest for 2 more years. Detailed step-by-step solution provided.

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