NextMockSearch exams, e.g. SSC CGL, UPPSC, Lekhpal
Railways PYQCBT 1 2016

RRB NTPC · Question 34

A man deposits Rs. 500 at the beginning of each year for 2 years at 10% p.a compound annually. Find the maturity value at the end of the 2^nd year. A. Rs. 1,050 B. Rs. 1,150 C. Rs. 1,155 D. Rs. 1,200

  1. A

  2. D

  3. C

  4. B

Show answer & explanation

Answer: (C) C

Explanation

The first Rs 500 is deposited at the start of year 1 and earns interest for 2 years: 500 × 1.1² = 605. The second Rs 500, deposited at the start of year 2, earns for 1 year: 500 × 1.1 = 550. Maturity value = 605 + 550 = Rs 1,155.