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
New: SSC CHSL Tier 2 answer key released | SSC CHSL 2024 Notification PDF
Recommended: How to crack SSC CHSL | SSC CHSL exam guide
Don't Miss: Month-wise Current Affairs | Upcoming government exams
New: Unlock 10% OFF on PTE Academic. Use Code: 'C360SPL10'
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.
Candidates can download this e-book to give a boost to thier preparation.
Result | Eligibility | Application | Admit Card | Answer Key | Preparation Tips | Cutoff
Question : A certain sum was invested at the rate of 10% for 2 years at Compound interest and compounded annually. The same sum was invested for the same period and the same rate of interest at Simple interest. If the difference between Compound interest and Simple interest was
Question : A sum becomes 1.96 times itself in 2 years when invested at compound interest (compounding annually). What is the annual rate of interest?
Question : A sum amounts to Rs. 6580 in 2 years and amounts to Rs. 7896 in 3 years on compound interest (compounding annually) at the same rate of interest. What is the annual rate of interest?
Question : A person invested a total sum of Rs. 15,500 in three schemes of simple interest at the annual rate of 4 percent, 6 percent, and 10 percent. At the end of one year, he got the same interest in all three schemes. What is the sum invested at the rate of 6 percent?
Question : A deposited INR 1,56,250 at 8% simple interest for 2 years. How much more money will A have in his account at the end of two years, if at the same rate of interest, the sum is invested in compound interest, compounded annually?
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile