New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    A sum increases by 40% in 4 years at simple interest.

    What will be the compound interest on Rs 14000 at the same rate after 3 years? 
    A Rs 1820 Correct Answer Incorrect Answer
    B Rs 4634 Correct Answer Incorrect Answer
    C Rs 1700 Correct Answer Incorrect Answer
    D Rs 6450 Correct Answer Incorrect Answer

    Solution

    If 40% increase in 4 years under simple interest, then the annual rate is:

    Rate per year =40%/4 ​= 10% per annum A  =  P ( 1  +  R/100 ​ ) T   A =  14,000 (1 + 10/100)3 = 18634 CI = 18634 - 14000 = 4634

    Practice Next