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

RRB NTPC · Question 39

The simple interest on a sum deposited at 8% p.a. for 8 years is Rs. 16,000. What will be the compound interest on the same sum at one fourth of the above rate of interest for 2 years?

  1. Rs. 1,020

  2. Rs. 980

  3. Rs. 1,010

  4. Rs. 1,015

Show answer & explanation

Answer: (C) Rs. 1,010

Explanation

P × 8 × 8/100 = 16000 gives P = Rs 25,000. One fourth of 8% is 2%. CI for 2 years = 25000 × (1.02² − 1) = 25000 × 0.0404 = Rs 1,010.