SarkariPYQ

SSC MTS 2022 PYQ — Question 56

SSC MTS - 19 July 2022 - Shift 1 • Quantitative Aptitude • Q56

Back to paper

₹15,000 is lent for one year at the rate of 20% per annum, the interest being compounded annually. If the compounding of the interest is done half - yearly, then how much more interest will be obtained at the end of the one-year period on the same initial sum?

Show answer & explanation

Correct answer: C

Explanation

The correct answer is option 3 i.e. ₹150.

Amount=P(1+R100)TAmount = P({1+ {R \over 100}})^T

P = ₹15,000

R = 20%

T = 1 year

So, Amount = 15,000(1 + 20/100)

Amount = 18,000     ...(i)

Now if interest is compounded half-yearly 

P = ₹15,000

R = 20/2 = 10%

T = 1 × 2 = 2 years

Now, A = 15,000(1 + 10/100)2

A = 18,150    ....(ii)

Hence the required difference is (ii) - (i),

Difference = 18,150 - 18,000 = 150.

Hence the required difference is ₹150.