SSC MTS 2 Aug 2019 Shift 1 Paper

Question : 28 of 100

Marks: +1, -0

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?

Rs. 624
Rs. 504
Rs. 576
Rs. 528

Validate

Solution:

Given:
Principal = Rs. 1200
Rate of interest = 20%
Time = 2 years
Calculation:
⇒ Compound interest = amount received after 2 years – principal

=1200(1+20/100)^2-1200

= 1728 – 1200
= Rs. 528
Short Trick:
Equivalent rate of interest for 2 years = 20 + 20 + (20 × 20) /100 = 44%
⇒ Required compound interest = (1200 × 44) /100
= Rs. 528

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