RRB NTPC · Question 38
The maturity value of a certain sum after two years at 20% p.a. interest compounded annually is Rs. 14,400/-. Find the principal amount. A. Rs. 9,000 B. Rs. 9,500 C. Rs. 10,000 D. Rs. 10,500
Show answer & explanation
Answer: (B) C
Explanation
Amount = P × 1.2² = 1.44P = 14,400, so P = Rs 10,000.