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Railways PYQCBT 1 2016

RRB NTPC · Question 28

A loan of Rs. 305 was taken at a certain rate per annum of compound interest, for 3 years. After three years the amount was Rs. 670, calculate the rate of compound interest. A. 30% B. 35% C. 33% D. 25%

  1. C

  2. B

  3. A

  4. D

Show answer & explanation

Answer: (C) A

Explanation

Amount = P(1 + r)³, so (1 + r)³ = 670/305 ≈ 2.197 = 1.3³. So 1 + r = 1.3 and the rate is 30% per annum.