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

RRB NTPC · Question 87

What is the difference between the maturity value of two deposits of Rs. 5,000 each invested for 2 years first at 5% simple interest and second at the same interest compounded annually?

  1. Rs. 11.00
  2. Rs. 11.50
  3. Rs. 12.00
  4. Rs. 12.50
Show answer & explanation

Answer: (D) Rs. 12.50

Explanation

SI = 5000 × 5 × 2 / 100 = Rs. 500. CI = 5000 × (1.05² − 1) = Rs. 512.50. Difference = Rs. 12.50 (shortcut: P × r² = 5000 × 0.05² = 12.5).