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

    Question

    A sum of ₹20,000 is invested at a compound interest

    rate of 5% per annum for 4 years. What will be the total amount after 4 years, and what is the total compound interest earned?
    A Total amount: ₹24,000, Total interest: ₹4,000 Correct Answer Incorrect Answer
    B Total amount: ₹24,310, Total interest: ₹4,310 Correct Answer Incorrect Answer
    C Total amount: ₹25,000, Total interest: ₹5,000 Correct Answer Incorrect Answer
    D Total amount: ₹25,600, Total interest: ₹5,600 Correct Answer Incorrect Answer

    Solution

    Amount = Principal * (1 + Rate)^Time Amount = 20,000 * (1 + 0.05)^4 = 20,000 * (1.21550625) = ₹24,310.13 Compound Interest = Amount - Principal = 24,310.13 - 20,000 = ₹4,310.13

    Practice Next