Advertisements
Advertisements
Question
What will be the compound interest on Rs 4000 in two years when rate of interest is 5% per annum?
Solution
We know that amount A at the end of n years at the rate of R % per annum is given by A = P\[ \left( 1 + \frac{R}{100} \right)^n . \]
Given:
P = Rs 4, 000
R = 5 % p . a .
n = 2 years
Now,
\[A = 4, 000 \left( 1 + \frac{5}{100} \right)^2 \]
\[ = 4, 000 \left( 1 . 05 \right)^2 \]
= Rs 4, 410
And,
CI = A - P
= Rs 4, 410 - Rs 4, 000
= Rs 410
APPEARS IN
RELATED QUESTIONS
Kamala borrowed Rs 26400 from a Bank to buy a scooter at a rate of 15% p.a. compounded yearly. What amount will she pay at the end of 2 years and 4 months to clear the loan?
(Hint: Find A for 2 years with interest is compounded yearly and then find SI on the 2nd year amount for `4/12` years.)
I borrowed Rs 12000 from Jamshed at 6% per annum simple interest for 2 years. Had I borrowed this sum at 6% per annum compound interest, what extra amount would I have to pay?
Find the amount and the compound interest on Rs 10,000 for `1 1/2` years at 10% per annum, compounded half yearly. Would this interest be more than the interest he would get if it was compounded annually?
Ramesh deposited Rs 7500 in a bank which pays him 12% interest per annum compounded quarterly. What is the amount which he receives after 9 months.
Meera borrowed a sum of Rs 1000 from Sita for two years. If the rate of interest is 10% compounded annually, find the amount that Meera has to pay back.
Kamal borrowed Rs 57600 from LIC against her policy at \[12\frac{1}{2} \%\] per annum to build a house. Find the amount that she pays to the LIC after \[1\frac{1}{2}\] years if the interest is calculated half-yearly.
Find the amount that David would receive if he invests Rs 8192 for 18 months at \[12\frac{1}{2} \%\] per annum, the interest being compounded half-yearly.
A sum of money was lent for 2 years at 20% compounded annually. If the interest is payable half-yearly instead of yearly, then the interest is Rs 482 more. Find the sum.
On what sum will the compound interest at 5% per annum for 2 years compounded annually be Rs 164?
Sum of money amounts to Rs 453690 in 2 years at 6.5% per annum compounded annually. Find the sum.
