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Railways PYQCBT 1 2016

RRB NTPC · Question 82

M borrowed some money for 1 year at certain simple interest. But the interest rate was increased to 2% which amounted to Rs. 120. Find the principal amount. A. Rs. 4,000 B. Rs. 5,000 C. Rs. 6,000 D. Rs. 7,000

  1. C

  2. D

  3. B

  4. A

Show answer & explanation

Answer: (A) C

Explanation

A 2% increase in the rate for 1 year adds Rs 120 of interest, so 2% of the principal = 120. Principal = 120 × 100/2 = Rs 6,000.