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Railways PYQCBT 2 2017

RRB NTPC · Question 15

'A' invests Rs. 10,000 for 3 years at a certain rate of interest. At the end of the second year. it amounts to Rs. 11,664. Calculate the rate of interest per annum, if interest is compounded annually.

  1. 7.9

  2. 8.5

  3. 8.7

  4. 8.0

Show answer & explanation

Answer: (D) 8.0

Explanation

After 2 years the amount is 10000(1 + r/100)² = 11664, so (1 + r/100)² = 1.1664 = 1.08². Hence r = 8%.