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Railways PYQCBT 2 2017

RRB NTPC · Question 27

A woman invests Rs. 2000 at the start of each year at 5% compound interest per annum. How much will her investments be at the end of the 2^nd year?

  1. Rs. 4305

  2. Rs. 4300

  3. Rs. 2355

  4. Rs. 4350

Show answer & explanation

Answer: (A) Rs. 4305

Explanation

The first Rs 2000 earns interest for 2 years: 2000 × 1.05² = Rs 2205. The second Rs 2000 earns for 1 year: 2000 × 1.05 = Rs 2100. Total at the end of year 2 = Rs 4305.