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Railways PYQCBT 2 2017

RRB NTPC · Question 99

Mr. Mike borrowed Rs. 8500 at 4% per annum compound interest. The compound interest compounded annually for 2 years is :

  1. Rs. 9139.6

  2. Rs. 639.6

  3. Rs. 9193.6

  4. Rs. 693.6

Show answer & explanation

Answer: (D) Rs. 693.6

Explanation

CI = 8500 × [(1.04)² − 1] = 8500 × 0.0816 = Rs 693.60. (Rs 9193.60 would be the amount, not the interest.)