A person invests Rs55 000 for two years on compound interest such that the rate of interest for the ...........

Quantitative Aptitude (MTS) Compound Interest

A person invests Rs55,000 for two years on compound interest such that the rate of interest for the first year is 8% per annum

and that for the second year is 12% per annum, and the interest is compounded annually. What is the total interest earned by

the person?

This questions was previously asked in

SSC MTS 20th July 2022 Shift-3

Rs11,645

Rs11,528

Rs12,386

Rs10,847

- Initial Investment: Rs 55,000

- First Year Interest Rate: 8%

- First year amount: 55000 * (1 + 8/100) = Rs 59,400

- Second Year Interest Rate: 12%

- Second year amount: 59400 * (1 + 12/100) = Rs 66,528

- Total Interest Earned: 66,528 - 55,000 = Rs 11,528

Option 1: Rs 11,645

Option 2: Rs 11,528

Option 3: Rs 12,386

Option 4: Rs 10,847

The correct answer is Option 2: Rs 11,528.

Submit Error