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SSC MTS 2019 PYQ — Question 64

SSC MTS Previous Year - 08 August 2019 - Shift 2 • Quantitative Aptitude • Q64

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Rs. 20000 is invested on compound interest (compounded half yearly) at the 20% per annum, then what will be the interest after two years?

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Correct answer: C

Explanation

The correct answer is Option 3 i.e Rs. 9282

Understanding

Application

Calculation

P = Rs. 20000

R = 20% per annum

T = 2 years

Since the interest is compounded half yearly:

R = 20/2 = 10

T = 2 × 2 = 4

 

For CI:

A = P(1 + R/100)T

So,

A = 20000(1 + 10/100)4

⇒ A = 29282

Hence,

Interest = A – P

= 29282 – 20000

= Rs. 9282

A = 20000(1 + 10/100)4

⇒ A = 20000 × 121/100 × 121/100

⇒ A = 2 × 14641

⇒ A = 29282