Compound Interest

Quantitative Aptitude (CGL)

Title

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Indian Economy - Understanding the basics of Indian economic system

A sum amounts to Rs18,600 after 3 years and to Rs27,900 after 6 years,at a certain rate percent p.a., when the interest is

compounded annually. The sum is:

This questions was previously asked in

SSC CGL 7 June 2019 Shift-1

Rs14,600

Rs12,400

Rs11,800

Rs14,400

- You are looking for the principal sum (P) that grows to Rs18,600 in 3 years and Rs27,900 in 6 years at the same interest rate.

- The compound interest formula is \( A = P(1 + r)^n \), where A is the amount, P is the principal, r is the rate, and n is the time in years.

- From the problem:

- \( 18,600 = P(1 + r)^3 \)

- \( 27,900 = P(1 + r)^6 \)

- Dividing the second equation by the first gives \( \frac{27,900}{18,600} = (1 + r)^3 \), simplifying to \( 1.5 = (1 + r)^3 \).

- Solving \( 1.5 = (1 + r)^3 \), you find \( 1 + r = 1.1447 \).

- Plug \( 1 + r \) back into the equation \( 18,600 = P(1.1447)^3 \) to find P.

- After solving, you get \( P = Rs12,400 \).

Your answer, option: 2 - Rs12,400, is correct: