Compound Interest

Quantitative Aptitude (SBI-CL)

Title

45:30

8 of 24 completed

5 of 15 completed

38 of 100 completed

8 of 20 completed

Indian Economy - Understanding the basics of Indian economic system

An amount of Rs. 14,000 is invested at the rate of 20% compounded annually for 2 years. Find the sum received after 2 years.

This questions was previously asked in

SBI Clerk Prelims (11 Jul, 2021 Shift 1)

Rs. 21,240

Rs. 19,380

Rs. 20,160

Rs. 22,340

None of these

- To calculate compound interest, use the formula A = P(1 + r/n)^(nt), where:

- P = principal amount (Rs. 14,000)

- r = annual interest rate (20% or 0.20)

- n = number of times interest is compounded per year (1 for annually)

- t = number of years (2)

- Substituting these values gives:

A = 14000 * (1 + 0.20/1)^(1*2)

A = 14000 * (1.20)^2

A = 14000 * 1.44

A = 20,160

- After calculating, the sum received after 2 years is Rs. 20,160.

- Option:3, Rs. 20,160