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Railways PYQCBT 1 2016

RRB NTPC · Question 7

What is the compound interest on Rs. 48,000 for 2 years at 20% p.a., if interest is compounded annually? A. Rs. 69,120 B. Rs. 21,120 C. Rs. 76,800 D. Rs. 72,000

  1. B

  2. D

  3. A

  4. C

Show answer & explanation

Answer: (A) B

Explanation

Amount = 48000 × (1 + 20/100)² = 48000 × 1.44 = Rs 69,120. Compound interest = amount − principal = 69120 − 48000 = Rs 21,120. (Rs 69,120 is the amount, not the interest.)