NextMockSearch exams, e.g. SSC CGL, UPPSC, Lekhpal
Railways PYQCBT 2 2017

RRB NTPC · Question 27

Mr Sathya invested money in FD. How much will he get on maturity. if Rs. 14,500 is invested at 20% per annum compound interest for 6 months, compounded quarterly?

  1. Rs. 15,986.25

  2. Rs. 15,986.5

  3. Rs. 15,986.35

  4. Rs. 15,986

Show answer & explanation

Answer: (A) Rs. 15,986.25

Explanation

Quarterly compounding at 20% a year means 5% per quarter, and 6 months = 2 quarters. Amount = 14500 × 1.05² = 14500 × 1.1025 = Rs 15,986.25.