New 👉 Ask your RBI Grade B 2025 Preparation Queries Here!!

    Register

    Question

    The interest earned when a sum is invested at simple

    interest of 20% p.a., for 3 years, is Rs. 3000. What will be the total amount received after 2 years on investing the same sum at compound interest (compounded annually) of 12% interest p.a.?
    A Rs. 6200 Correct Answer Incorrect Answer
    B Rs. 6472 Correct Answer Incorrect Answer
    C Rs. 6772 Correct Answer Incorrect Answer
    D Rs. 6272 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Let the sum invested = Rs. Y According to the question, (Y × 3 × 20) ÷ 100 = 3000 So, Y = (3000/0.6) = 5000 So, required amount received = 5000(1 + 12/100)2 = 5000(112/100)2 = Rs. 6272

    Practice Next