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

    Question

    A sum of ₹12,000 earns ₹1,920 as simple interest in

    4 years. What will be the compound interest on the same sum in 2 years at the same rate of interest per annum?
    A ₹996 Correct Answer Incorrect Answer
    B ₹1,020 Correct Answer Incorrect Answer
    C ₹1,200 Correct Answer Incorrect Answer
    D none Correct Answer Incorrect Answer

    Solution

    Simple Interest per year = ₹1,920 / 4 = ₹480. Rate of interest = (480 / 12,000) × 100 = 4% Compound Interest = P × [(1 + r/100)^t - 1]: CI = 12,000 × [(1 + 4/100)^2 - 1] = 12,000 × (1.0816 - 1)  = 12,000 × 0.0816 = ₹979.2. Correct Option: d

    Practice Next