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SSC MTS 2019 PYQ — Question 54

SSC MTS Previous Year - 02 August 2019 - Shift 1 • Quantitative Aptitude • Q54

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What will be the compound interest on a sum of Rs. 1200 for 2 years at the rate of 20% per annum when the interest is compounded yearly?
 

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Correct answer: D

Explanation

Correct Answer is option 4 i.e. Rs. 528

Understanding

Application

For CI:

A = P(1 + r/100)t

Given:

P = Rs. 1200

t = 2, r = 20%

From the formula:

A = 1200 (1 + 20/100)2

= 1200 (36/25)

= 1728

Hence,

Interest = 1728 – 1200 = Rs. 528