Question 70

A sum of ₹3000 is invested on compound interest (compounded annually) at the rate of interest is 20% per annum. What is the compound interest for 2 years?

Solution

Amount after 2 years :

$$P(1 + \frac{r}{100})^2 = 3000(1 + \frac{20}{100})^2 = 4320$$

Compound Interest = 4320 - 3000 = 1320

So, the answer would be option c)1320

Share on Whatsapp Share on Whatsapp

Create a FREE account and get:

Free SSC Study Material - 18000 Questions
230+ SSC previous papers with solutions PDF
100+ SSC Online Tests for Free

Follow us on

Boost your Prep!

Download App