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Railways PYQCBT 2 2017

RRB NTPC · Question 45

An amount is deposited at 8% p.a. compound interest. If the first year interest is Rs. 72, find the interest amount for the 2^nd year.

  1. Rs. 77.56

  2. Rs. 77.64

  3. Rs. 77.76

  4. Rs. 85.77

Show answer & explanation

Answer: (C) Rs. 77.76

Explanation

Under compound interest the second year's interest is also earned on the first year's interest: 72 × 1.08 = Rs 77.76. (The principal is 72/0.08 = Rs 900.)