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Railways PYQCBT 1 2020

RRB NTPC · Question 4

A sum of money amounts to Rs.1600 in two years and Rs. 1700 in three years, at compounded interest, compounded annually. What is the rate of interest?

  1. 6.5%

  2. 6.25%

  3. 6%

  4. 7%

Show answer & explanation

Answer: (B) 6.25%

Explanation

One year's growth from Rs 1600 to Rs 1700 is Rs 100, i.e. 100/1600 = 6.25% per annum.