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Arithmetic
Compound Interest
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RRB NTPC Graduate Tier 1 2016 Shift 2 📅 02 Apr, 2016

What is the compound interest on Rs. 48,000 for 2 years at 20% p.a., if interest is compounded annually?

A
Rs. 69,120
B
Rs. 21,120
C
Rs. 76,800
D
Rs. 72,000
Result Summary
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RRB NTPC Graduate Tier 1
2016 • 02 Apr, 2016 • Shift 2
What is the compound interest on Rs. 48,000 for 2 years at 20% p.a., if interest is compounded annually?
Correct Answer
Rs. 21,120
Formula Application: Compound Interest (CI) = Principal * [(1 + Rate/100)^Time - 1].Value Substitution: Principal = 48000, Rate = 20%, Time = 2 years. CI = 4800......
Ref/Book : RRB NTPC Graduate Tier 1 2016
Ref. Subject Arithmetic
Chapter -
Ref. Topic Compound Interest
Pg. No -
💡 Analysis & Explanation
Formula Application ▼
Compound Interest (CI) = Principal * [(1 + Rate/100)^Time - 1].
Value Substitution ▼
Principal = 48000, Rate = 20%, Time = 2 years. CI = 48000 * [(1 + 20/100)^2 - 1].
Intermediate Calculation ▼
The multiplier becomes [(1.2)^2 - 1] = 1.44 - 1 = 0.44.
Final Yield ▼
CI = 48000 * 0.44 = 21120.
Conclusion ▼
The total compound interest accrued is Rs. 21,120.
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