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Railways PYQCBT 1 2016

RRB NTPC · Question 57

Mr. Yudish borrowed Rs. 3500 at 4% per annum compound interest. The compound interest compounded annually for 2 years is: A. 285.6 B. 3785.6 C. 3758.6 D. 258.6

  1. A

  2. D

  3. B

  4. C

Show answer & explanation

Answer: (A) A

Explanation

Amount after 2 years = 3500 × (1.04)² = 3500 × 1.0816 = Rs 3,785.60. The compound interest is the amount minus the principal: 3785.60 − 3500 = Rs 285.60.