New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Rs. 5000 when invested at simple interest of r% p.a.

    amounts to Rs. 6000 in 24 months. If the same sum had been invested for 1 year at compound interest of (r + 20) % p.a. (compounded in every 4 months), then the amount received would be?
    A 6255 Correct Answer Incorrect Answer
    B 6355 Correct Answer Incorrect Answer
    C 6655 Correct Answer Incorrect Answer
    D 6455 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    According to the question, 6000 – 5000 = (5000 × r × 24) ÷ (12 × 100) Or, 1000 = 100 × r Or, r = 10 When the sum is invested at compound interest, Effective rate of interest = (r + 20) ÷ 3 = (10 + 20) ÷ 3 = 10% Effective time period = 1 × 3 = 3 units Amount received = Principal × {1 + (r/100)}time period = 5000 × {1 + (10/100)}3 = 5000 × (1.1)3 = 6655

    Practice Next