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Railways PYQCBT 2 2017

RRB NTPC · Question 8

A woman invests Rs. 100 at the start of each year at 5% compound interest per annum. How much will her investment be, at the end of the 2^nd year?

  1. Rs. 215.25

  2. Rs. 215.5

  3. Rs. 215

  4. Rs. 215.75

Show answer & explanation

Answer: (A) Rs. 215.25

Explanation

The first Rs 100 grows for 2 years: 100 × 1.05² = 110.25. The second Rs 100 grows for 1 year: 105. Total = Rs 215.25.