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Railways PYQCBT 1 2016

RRB NTPC · Question 86

Mr. Ibrahim borrowed Rs. 7500 at 5% per annum compound interest. the compound interest compounded annually for 2 years is. A. 768.75 B. 8268.75 C. 8286.75 D. 786.75

  1. B

  2. D

  3. A

  4. C

Show answer & explanation

Answer: (C) A

Explanation

Amount = 7500 × (1.05)² = 7500 × 1.1025 = Rs 8,268.75. Compound interest = 8,268.75 − 7,500 = Rs 768.75.