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Railways PYQCBT 1 2016

RRB NTPC · Question 47

A sum of Rs. 4000 amounts to Rs. 5200 in 10 yr by simple interest.What will be the total interest if the rate of interest is increased by 4%?

  1. Rs. 1600

  2. Rs. 2360

  3. Rs. 2800

  4. Rs. 5400

Show answer & explanation

Answer: (C) Rs. 2800

Explanation

Interest = 5200 − 4000 = Rs 1,200 in 10 years, so the rate = 1200 × 100/(4000 × 10) = 3%. If the rate rises by 4% to 7%, the total interest = 4000 × 7 × 10/100 = Rs 2,800.