10 Views

Question : Rajeev invested Rs. 3,000 for 2 years at compound interest (compounded annually) in a company that paid him interest of Rs.1,320. What will be the annual rate of interest at which Rajeev invested his money?

Option 1: 30 percent

Option 2: 24 percent

Option 3: 16 percent

Option 4: 20 percent


Team Careers360 23rd Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: 20 percent


Solution : Given, Principal ($P$) = Rs. 3000
Compound Interest ($CI$) = Rs. 1320
Time (t) = 2 years
We know, $CI = P(1 + \frac{r}{100})^t - P$
⇒ $1320 = 3000(1+\frac{r}{100})^2 - 3000$
⇒ $1320+3000 = 3000(1+\frac{r}{100})^2$
⇒ $\frac{4320}{3000}=(1+\frac{r}{100})^2$
⇒ $\sqrt{1.44}=(1+\frac{r}{100})$
⇒ $1.2 = (1+\frac{r}{100})$
⇒ $1.2-1 = \frac{r}{100}$
⇒ $r = 0.2\times 100 = 20\%$
Hence, the correct answer is 20 percent.

How to crack SSC CHSL

Candidates can download this e-book to give a boost to thier preparation.

Download Now

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books