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Railways PYQCBT 2 2017

RRB NTPC · Question 104

If Ram puts Rs. 2000 in a savings account that earns 20% annual interest compounded half-yearly, how much money will be in the account after one year?

  1. Rs. 3530

  2. Rs. 2420

  3. Rs. 2630

  4. Rs. 3870

Show answer & explanation

Answer: (B) Rs. 2420

Explanation

Half-yearly compounding at 20% a year means 10% per half-year for 2 periods: 2000 × 1.1² = Rs 2420.