Advertisements
Advertisements
Question
The difference between Simple Interest and Compound Interest on Rs. 500 for 1 year at 10% per annum, reckoned half-yearly is
Options
Rs. 1
Rs. 1.25
Rs. 1.5
Rs. 2
Solution
Rs. 1.25
Explanation:
As interest is compounded half-yearly.
∴ rate`=10/2` = 5% half-yearly
time = 1 year = 2 half-yearly
Compound interest`=500xx[(1+5/100)^2-1]`
and simple interest`=(500xx5xx2)/100`
Difference`=500xx[(1+5/100)^2-1]-(500 xx5xx2 ) /100`
`=500xx25/(100xx100)=5/4=₨. 1.25`
APPEARS IN
RELATED QUESTIONS
Formula such as dollars of interest earned divided by total dollars invested is used to calculate
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?
A certain sum of money amounts to Rs. 1,008 in 2 years and to Rs. 1, 164 in 3 `1/2` years. Find the sum and the rate of interest.
What will be the ratio of simple interest earned by a certain amount at the same rate of interest for 6 yr and that for 9 yr?
The difference between simple interest and compound interest on a certain sum of money is Rs. 32 at 8% per annum for 2 years. Find the amount.
The compound interest on Rs. 30000 at 7% p.a. is Rs. 4347. What is the period in years?
In how much time (in years) will ₹7200 amount to Rs. 8928 at simple interest at the rate of 8% per annum?
Ram bought 1600 eggs at Rs. 3.75 per dozen. He sold 900 of them at 2 for Re 1 and the remaining at 5 for Rs. 2. His gain percent is:
Jackie invested ₹12000 in a bank at 15% p.a., C.I. He pays 40% of his income from interest to a charitable trust every year. How much money does Jackie have after 4 years?
The simple interest accrued in 2 years on a principal of ₹24000 is one-eighth of the principal. What is the rate of simple interest p.c.p.a.?
