SSC CGL Model Paper 20

Question : 60 of 100

Marks: +1, -0

If in 2 years at simple interest the principal increases by 18%, what will be the compound interest (in ₹) earned on ₹7000 in 3 years at the same rate ?

1865.2
2065.2
1965.2
1765.2

Validate

Solution:

Let the principal amount be ₹P.

SI={P × R × T}/100

⇒

{18P}/100={P×R×2}/100

∴ R = 9%
and

CI = P[(1+R/100)^n-1]

= 7000[(1+9/100)^3-1]

= 7000[(109/100)^3-1]

= 7000({1295029-1000000}/1000000)

= 7000× 295029/1000000=\₹2065.2

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