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Railways PYQCBT 2 2017

RRB NTPC · Question 76

If 'P' is the amount invested at 5% p.a. compounded half yearly for 2 years. what would be the amount received at the end of 2 years?

  1. P(1.025)^4

  2. P(1.1)

  3. P(1.05)^2

  4. P(1.025)^2

Show answer & explanation

Answer: (A) P(1.025)^4

Explanation

Half-yearly compounding: the rate per half-year is 2.5% and 2 years = 4 periods. Amount = P(1.025)⁴.