Advertisements
Advertisements
Question
A man gets a simple interest of Rs. 2,000 on a certain principal at the rate of 5% p.a. in 4 years. What compound interest will the man get on twice the principal in 2 years at the same rate?
Solution
Let the Principal amount = P
Simple Interest I = ₹ 2000
Rate of interest R = 5% p.a.
Time duration = T = 4 years
I = `"PRT"/100`
∴ 2000 = `("P" xx 5 xx 4)/100`
∴ P = 10000
Twice the principal was invested for compound interest with the same rate of interest for 2 years.
Here, P = 2 × 10,000
= ₹ 20,000
∴ Amount received,
A = P`(1 + "R"/100)^"T"`
∴ A = `20000(1 + 5/100)^2`
= `20000 xx 21/20 xx 21/20`
= 50 × 441 = 22050
I = A – P = 22050 – 20000 = 2050
The man will receive ₹ 2050 as compound interest.
APPEARS IN
RELATED QUESTIONS
The difference between Simple Interest and Compound Interest on Rs. 500 for 1 year at 10% per annum, reckoned half-yearly is
What will be the difference in simple and compound interest on Rs. 2, 000 after three years at the rate of 10 percent per annum?
Kirti took a loan of ₹800 at a rate of 11% per year for 7 months. After seven months she has to pay
If ₹80 amounts to ₹140 in 4 years, what will ₹96 amount to in 10 years at the same rate of interest per annum?
A person borrows ₹ 5000 for 2 yr at 4% per annum simple interest. He immediately lends it to another person at `6 1/4` per annum for 2 yr. Find his gain in the transaction per year.
Reena took a loan of ₹1200 with simple interest for as many years as the rate of interest. If she paid ₹432 as interest at the end of the loan period, what was the rate of interest?
An automobile financier claims to be lending money at simple interest, but he includes the interest every six months for calculating the principal. If he is charging an interest of 10%. the effective rate of interest becomes
A person takes a loan of ₹200 at 5% simple interest. He returns ₹100 at the end of 1 yr. In order to clear his dues at the end of 2 yr, he would pay
There is 60% increase in an amount in 6 year at simple interest. What will be the compound interest of ₹ 12000 after 3 years at the same rate?
The difference between compound interest and simple interest on an amount of ₹15000 for 2 years is ₹96. What is the rate of interest per annum?
A man took a loan from a bank at the rate of 12% per annum simple interest. After 3 years, he had to pay ₹5400 for the whole period. The principal borrowed by him was
What would be the simple interest on an amount of Rs. 9600 at the rate of 6% per annum after 3 years?
In how many years Rs. 1,00,000 will become Rs. 1,33,100 at a compound interest rate of 10% per annum?
Reshma put an amount at simple interest at a certain rate for 3 years. Had she been put at a 2% higher rate, she would have received Rs 360 more. Find the sum.
The compound interest on Rs. 30000 at 7% p.a. is Rs. 4347. What is the period in years?
At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?
A man invested `1/3` of his capital at 7%; `1/4` at 8% and the remainder at 10%. If his annual income is ₹ 561, the capital is
A salesperson, with a view to promoting sales of an item, applies the principle of simple interest. He declares that 300 pieces of the item can be obtained immediately against cash payment, but a customer will get only 200 pieces of the item if he defers the payment for a year. What is the rate percentage of interest on the whole?
What is the compound interest on a sum of ₹7200 for `2 2/5` years at 20% p.a. interest compounded yearly (nearest to an Integer)?
If x, y, z are three sums of money such that y is the simple interest on x and z is the simple interest on y for the same time and at the same rate of interest, then we have-
