Compound Interest
- A sum of money placed at compound interest doubles itself in 5 years. It will amount to eight times itself in ?
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Let the principal be P and rate be r%.Then
2P = P(1 + r/100)5
⇒ (1 + r/100)5 = 2
Let it be 8 times in t years, then
∵ 8P = P(1 + r/100)tCorrect Option: A
Let the principal be P and rate be r%.Then
2P = P(1 + r/100)5
⇒ (1 + r/100)5 = 2
Let it be 8 times in t years, then
∵ 8P = P(1 + r/100)t
⇒ (1 + r/100)t = 8
⇒ (2)3 ⇒ (1 + r/100)15
∴ t =15 year.
- The compound interest on a certain sum of money for 2 years at 10% per annum is Rs. 420. The simple interest on the same sum at the same rate and for the same time will be ?
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Let the principal be P. Then,
∵ P(1 +10/100)2 - P =420
⇒ P(121 - 100/100) =420
⇒ P = Rs. 2000Correct Option: D
Let the principal be P. Then,
∵ P(1 +10/100)2 - P =420
⇒ P(121 - 100/100) =420
⇒ P = Rs. 2000
∴ Requared S.I.= Rs.(2000 x 2 x 10)/100
= Rs. 400
- Rs. 1600 at 10% per annum compounded half yearly amount to Rs. 1944.81 in ?
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1600(1 +5/100)t = 1944.81
⇒ (21/20)t =194481/160000 =(441/400)2 = (21/20)4
∴ T = 4( half years)
⇒ Required time =2 yearsCorrect Option: A
1600(1 +5/100)t = 1944.81
⇒ (21/20)t =194481/160000 =(441/400)2 = (21/20)4
∴ T = 4( half years)
⇒ Required time =2 years
- What will be the approximate compound interest on Rs. 101005 at 10% p.a. for 3 years ?
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Compound interest = P {(1 + r/100)t - 1}
= 10105 { (1 +10/100)3 - 1}Correct Option: C
Compound interest = P {(1 + r/100)t - 1}
= 10105 { (1 +10/100)3 - 1}
=10105 {(11/10)3 - 1}
=10105 {1331/1000 - 1}
=10105(331/1000)
= 3344.755
= Rs. 3300(app.)
- If the compound interest of a certain sum of money for two successive years be Rs, 225 and Rs. 238.50. What is the rate of interest per annum ?
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From question it is clear that the simple interest of rupees 225 for one year is 238.50 - 225.
Correct Option: B
From question it is clear that the simple interest of rupees 225 for one year is 238.50 - 225.
So Rate = (simple interest x 100 )/( time x principle)
= {(238.50 - 225) x 100}/(225 x 1) % = 6%