Compound Interest
- Simple interest on a sum at 4% per annum for 2 years is Rs.80. The compound interest on the same sum for the same period is ?
-
View Hint View Answer Discuss in Forum
principle = (interest x 100) / (time x rate)
= Rs. (100 x 80)/(4 x 2) = Rs. 1000
∴ C.I. =Rs.[{1000 x (1 + 4/100)2 - 1000}]
Correct Option: A
principle = (interest x 100) / (time x rate)
= Rs. (100 x 80)/(4 x 2) = Rs. 1000
∴ C.I. =Rs.[{1000 x (1 + 4/100)2 - 1000}]
= Rs. 81.60
- The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is ?
-
View Hint View Answer Discuss in Forum
∵ P x (1 + 20/100)t > 2P
⇒ (6/5)n > 2Correct Option: B
∵ P x (1 + 20/100)t > 2P
⇒ (6/5)n > 2
Now, (6/5) x (6/5) x (6/5) x (6/5) > 2
⇒ 1296/615 > 2
∴ t = 4 years
- A sum of money amounts to Rs. 10648 in 3 years and Rs. 9680 in 2 years. The rate of interest is ?
-
View Hint View Answer Discuss in Forum
Let P be the principle and R% per annum be the rate. Then,
P(1 + R/100)3 = 10648 ....(i)
and P(1 + R/100)2 = 9680 .....(ii)Correct Option: B
Let P be the principle and R% per annum be the rate. Then,
P(1 + R/100)3 = 10648 ....(i)
and P(1 + R/100)2 = 9680 .....(ii)
on dividing (i) by (ii), we have
⇒ (1 + R/100) = 10648/9680
⇒ R/100 =968/9680 = 1/10
∴ R =100/10 = 10%
- A sum is invested at compound interest payable annually. The interest in two successive years was Rs. 500 and Rs. 540. The sum is ?
-
View Hint View Answer Discuss in Forum
S.I. on Rs. 500 for 1 year = 540 - 500 = Rs. 40
∴ Rate = (100 x 40)/(500 x 1) = 8%
and Sum = Rs.(100 x 500)/(8 x 1) = Rs. 6250Correct Option: D
S.I. on Rs. 500 for 1 year = 540 - 500 = Rs. 40
∴ Rate = (100 x 40)/(500 x 1) = 8%
and Sum = Rs.(100 x 500)/(8 x 1) = Rs. 6250
- The difference between simple interest and compound interest at the same rate for Rs. 5000 for 2 years is Rs. 72.The rate of interest is ?
-
View Hint View Answer Discuss in Forum
[5000 x (1 +R/100)2 - 5000] - (5000 x 2 x R)/100 =72
Correct Option: B
∵ [5000 x (1 +R/100)2 - 5000] - (5000 x 2 x R)/100 =72
⇒ 5000[(1 +R/100)2 - 1 - R/50] = 72
∴ 1 + R2/10000 + 2R/100 - 1 - R/5 = 72/5000
⇒ R2 = (72/5000 x 10000) = 144
∴ R = 12%