Compound Interest
- A sum of money becomes Rs. 6690 after three years and Rs. 10035 after six years on compound interest. The sum is ?
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Let the principal be P,then
P(1 + R/100)3 = 6690
And P(1 + R/100)6 = 10,035
Now, dividing (ii)by (i),we get
⇒ (1 + R/100)3 = 10035/6690 = 3/2Correct Option: C
Let the principal be P,then
P(1 + R/100)3 = 6690
And P(1 + R/100)6 = 10,035
Now, dividing (ii)by (i),we get
⇒ (1 + R/100)3 = 10035/6690 = 3/2
⇒ P x 3/2 = 6690
∴ P = (6690 x 2/3 ) = Rs. 4460
- What will be the compound interest of Rs. 8000 at 10% p.a. for 11/2 years. When compound interest is payable half yearly ?
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Yearly interest = 10%
Half yearly = 5%
Time = 11/2 = (3/2) x 2 half yearly = 3 half yearly
Amount = 8000(1 + 5/100)3
= 8000 x (21/20)3
= 8000 x 21/20 x 21/20 x 21/20
= Rs. 9261Correct Option: A
Yearly interest = 10%
Half yearly = 5%
Time = 11/2 = (3/2) x 2 half yearly = 3 half yearly
Amount = 8000(1 + 5/100)3
= 8000 x (21/20)3
= 8000 x 21/20 x 21/20 x 21/20
= Rs. 9261
Compound interest = Amount - Principal = 9261 - 8000
= Rs. 1261
- If the interest of a certain sum for the first year at 8% p.a. compound interest is Rs. 48. What will be the interest for the second years ?
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S.I. or C.I. for first year are always equal
Principle = (S.I. x 100)/(Rate x Time)
= (48 x 100)/(8 x 1) = Rs. 600
Interest for second year = Amount of second year - Amount of the first year
= 600 (1 +8/100)2 - 600(1 +8/100)Correct Option: B
S.I. or C.I. for first year are always equal
Principle = (S.I. x 100)/(Rate x Time)
= (48 x 100)/(8 x 1) = Rs. 600
Interest for second year = Amount of second year - Amount of the first year
= 600 (1 +8/100)2 - 600(1 +8/100)
= 600(27/25)2 - 600(27/25)
= 600(27/25) {27/25 - 1}
= 600(27/25) (2/25)
= Rs. 51.84
- If the compound interest of a certain sum of money for 2 years at 5 % p.a. is Rs. 328. what will be the simple interest on the same time and at the same rate ?
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∵ 328 = Principal {(1 +5/100)2 - 1}
⇒ 328 = Principal (441/400 - 1)
⇒ 328 =Principal 41/400
⇒ Principal = (328 x 400)/41 = Rs. 3200
∴ Simple interest = (3200 x 5 x 2) / 100 = Rs. 320Correct Option: A
∵ 328 = Principal {(1 +5/100)2 - 1}
⇒ 328 = Principal (441/400 - 1)
⇒ 328 =Principal 41/400
⇒ Principal = (328 x 400)/41 = Rs. 3200
∴ Simple interest = (3200 x 5 x 2) / 100 = Rs. 320
- Find the least number of complete years in which a sum of money put out at 20 percent compound interest will be more than doubled ?
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Here P(1+20/10)t > 2P
⇒ (6/5)t > 2
Correct Option: C
Here P(1 + 20/10)t > 2P
⇒ (6/5)t > 2
∵ (6/5)3 = 1.728, and
(6/5)4 = 2.0736
By trial (6/5) x (6/5) x (6/5) x (6/5) > 2
∴ The required time is 4 years.