A sum of Rs5 000 amountsto Rs7 200 in 8 years at a certain rate per cent p a interest compounded yea...........

Quantitative Aptitude (CPO) Compound Interest

A sum of Rs5,000 amountsto Rs7,200 in 8 years at a certain rate per cent p.a, interest compounded yearly. What will be the compound

interest on a sum of Rs6,550 in 4 years at the same rate of interest?

This questions was previously asked in

SSC CPO 12th Dec 2019 Shift-1

Rs1,290

Rs1,285

Rs1,415

Rs1,310

Let’s break it down:

- First, Rs5,000 grows to Rs7,200 in 8 years with compound interest.

- The compound interest formula: A = P(1+r)^n

- Here: 7,200 = 5,000 × (1 + r)^8

- (1 + r)^8 = 7,200 / 5,000 = 1.44

- (1 + r) = (1.44)^(1/8) ˜ 1.0467

- So r ˜ 4.67% per year

- Now, for Rs6,550 in 4 years:

- Compound amount: 6,550 × (1.0467)^4 ˜ 6,550 × 1.201 ˜ 7,867.05

- Compound interest: 7,867.05 - 6,550 ˜ 1,317.05

- The options:

- Option 1: Rs1,290 (close, but a bit low)

- Option 2: Rs1,285 (also low)

- Option 3: Rs1,415 (too high)

- Option 4: Rs1,310 (this is the closest match)

- So, Option 4: Rs1,310 is correct.

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