Question Bank • QB_GA_QA_016 NAT • 2 Marks

Section 8: General Aptitude

Quantitative Aptitude

Subtopic: Numerical Computation

Question Statement:

A principal amount of $\text{Rs. } 10,000$ is invested in an agricultural bond bearing an annual nominal interest rate of $12\%$ compounded semi-annually. The total compound amount in Rupees accrued at the end of 1 year is ________ (answer in integer).

Answer Key:

11236

Step-by-Step Solution & Explanation

1. Principal $P = 10,000$. 2. Semi-annual interest rate $r = \frac{12\%}{2} = 6\% = 0.06$. 3. Compounding periods in 1 year $n = 2$. 4. Compound Amount: $A = P (1 + r)^n = 10000 \times (1 + 0.06)^2 = 10000 \times (1.06)^2 = 10000 \times 1.1236 = \text{Rs. } 11,236$
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