Advertisements
Advertisements
Question
Govind borrows Rs 18,000 at 10% simple interest. He immediately invests the money borrowed at 10% compound interest compounded half-yearly. How much money does Govind gain in one year?
Solution
To calculate S.I.
P = Rs. 18,000; R = 10% and T = 1 year
S.I. = Rs. `[18,000 xx 10 xx 1]/100` = Rs. 1,800
To calculate C.I.
For 1st half- year:
P = Rs. 18,000; R = 10% and T = `1/2` year
Interest = Rs. `[ 18,000 xx 10 xx 1]/[ 100 xx 2]` = Rs. 900
Amount = Rs. 18,000 + Rs. 900 = Rs. 18,900
For 2nd year:
P = Rs. 18,900; R = 10% and T = `1/2` year
Interest = Rs. `[ 18,900 xx 10 xx 1 ]/[ 100 xx 2]` = Rs. 945
Amount = Rs. 18,900 + Rs. 945 = Rs. 19,845
Compound interest = Rs. 19,845 - Rs. 18,000 = Rs. 1,845
His gain = Rs. 1,845 - Rs. 1,800 = Rs. 45
APPEARS IN
RELATED QUESTIONS
Calculate the amount and the compound interest for the following:
Rs.25, 000 at `8 2/5 %` p.a. in `1 1/3` years
Ameesha loaned Rs. 24,000 to a friend for `2 1/2` at 10 % p.a. compound interest.
Calculate the interest earned by Ameesha.
Ameeha loaned Rs. 24,000 to a friend for `2 1/2` at 10 % p.a. compond interest.
Calculate the amount received by her at the end of time period.
Calculate the amount and the compound interest for the following :
Rs. 12500 for 2 years at 8% for the first year and 10% for the second year.
Meera borrowed Rs 12,500 on compound interest from Rajeev for 2 years when the rates of interest for successive years were 8% and 10%. If Meera returned Rs 7,500 at the end of the first year, find the amount she has to return at the end of the second year.
Find the sum invested at `12 1/2` p.a. compound interest on which the interest for the third year exceeds that of the first year by Rs 531.25.
Calculate the amount and cornpound interest for the following, when cornpounded annually:
Rs 25,000 for 3 years at 8 % p.a.
Calculate the amount and the compound interest on :
Rs. 6,000 in 3 years at 5% per year.
Find the compound interest on Rs. 4,000 accrued in three years, when the rate of interest is 8% for the first year and 10% per year for the second and the third years.
Calculate the difference between the simple interest and the compound interest on Rs. 4,000 in 2 years at 8% per annum compounded yearly.
