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Railways PYQCBT 2 2017

RRB NTPC · Question 22

There is a 40% increase in an amount in 4 years at simple interest. What will be the compound interest on Rs. 6000 after 3 years at the same rate?

  1. Rs. 1260

  2. Rs. 1986

  3. Rs. 19860

  4. Rs. 7986

Show answer & explanation

Answer: (B) Rs. 1986

Explanation

40% simple interest in 4 years means 10% a year. CI on 6000 for 3 years at 10% = 6000 × (1.331 − 1) = Rs 1986.