RBI Assistant Model Paper 8

Let the sum be Rs P and rate of interest is R% per annum.
Simple interest for first year and second year is Rs 140 and Rs 140 respectively.
For first year compound interest and simple interest are same.
So, Compound interest for second year = 308−140 = Rs 168
Rate of interest =

168−140

140

×100 = 20%
So, sum =

280×100

20×2

= Rs 700