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Railways PYQCBT 1 2016

RRB NTPC · Question 83

Ranjan borrows Rs 7500 at an annual compound interest rate of 4%. What will be the compound interest for 2 years while the interest is compounded annually? A. 612 rupees B. 8112 rupees C. 8121 rupees D. 621 rupees

  1. C

  2. B

  3. A

  4. D

Show answer & explanation

Answer: (C) A

Explanation

Amount = 7500 × (1.04)² = 7500 × 1.0816 = Rs 8,112. Compound interest = 8,112 − 7,500 = Rs 612.