Multiple Choice Questions

At what percentage rate compound interest compounded annually for a sum of Rs40 000 will amount to R...........

Quantitative Aptitude (CPO) Compound Interest

At what percentage rate, compound interest compounded annually for a sum of Rs40,000, will amount to Rs44,100 in two years?

This questions was previously asked in

SSC CPO 9th Dec 2019 Shift-1

7.5

- We need to find the compound interest rate for Rs40,000 to grow to Rs44,100 in two years.

- Use the compound interest formula: A = P(1 + r/100)^n.

- Here, A = Rs44,100, P = Rs40,000, and n = 2 years.

- The formula becomes 44,100 = 40,000(1 + r/100)^2.

- Solve for r: (1 + r/100)^2 = 44,100/40,000 = 1.1025.

- Take the square root: 1 + r/100 = v1.1025 ˜ 1.05.

- Simplify to find r: r ˜ 0.05 or 5%.

- Option:3 - 5 matches the calculation.

- 5% is the correct interest rate.

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