Umesh earns a simple interest of ₹1,600 on a certain sum in two years at the rate of 4% interest per annum compounded annually.
A.₹32✓ Correct
B.₹20
C.₹48
D.₹64
Explanation
SI for 2 years = ₹1600, so SI per year = ₹800. Principal = 800/4 × 100 = ₹20,000. CI for 2 years = 20,000 × (1.04)² – 20,000 = 21,632 – 20,000 = ₹1,632. Extra interest = 1,632 – 1,600 = ₹32.
💡 Practice unlimited SSC MTS PYQs + AI-tracked progress on each topic. Sign up free →
Want more SSC MTS practice?
Free daily 10-Q quiz · adaptive mocks · 4,000+ verified PYQs · AI doubt solver in Hindi + English