Compound Interest
- The simple interest for certain sum in 2 yr at 4% pa is ₹ 80. What will be the compound interest for the same sum, if conditions of rate and time period are same ?
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Given, n = 2 yr, R = 4% and SI = 80
According to the formula,
CI = SI(1 + 4/200)Correct Option: B
Given, n = 2 yr, R = 4% and SI = 80
According to the formula,
CI = SI(1 + 4/200) = 80 x 51/50 = ₹ 81.60
- Income of Shantanu was ₹ 4000. In the first 2 yr. his income decreased by 10% and 5% respectively but in the third year, the income increased by 15%. What was his income at the end of third year ?
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Given, P = ₹ 4000
R1= 10% (decreased), R2 = 5% (decreases) and R3 = 15% (growth)
∴ According to the formula,
Income at the end of third year = P(1 - R1/100)(1 - R2/100)(1 + R3/100)
= 4000(1- 10/100) (1 - 5/100) (1 + 15/100)Correct Option: A
Given, P = ₹ 4000
R1= 10% (decreased), R2 = 5% (decreases) and R3 = 15% (growth)
∴ According to the formula,
Income at the end of third year = P(1 - R1/100)(1 - R2/100)(1 + R3/100)
= 4000(1- 10/100) (1 - 5/100) (1 + 15/100)
= 4000 x (9/10) x (19/20) x (23/20)
= 9 x 19 x 23
= ₹ 3933
- The compound interest on a sum of ₹ 4000 becomes ₹ 630.50 in 9 months. Find the rate of interest, if interest is compounded quarterly.
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Given, P =₹ 4000,
n = 9 months = 3/4 yr and
CI = ₹ 630.50
Amount = P + CI = 4000 + 630.50 = ₹ 4630.50
According to the formula,
⇒ Amount = P[(1+R/(100 x 4)]4n
⇒ 4630.50 = 4000(1+R/400)4 x 3/4Correct Option: A
Given, P =₹ 4000,
n = 9 months = 3/4 yr and
CI = ₹ 630.50
Amount = P + CI = 4000 + 630.50 = ₹ 4630.50
According to the formula,
⇒ Amount = P[(1+R/(100 x 4)]4n
⇒ 4630.50 = 4000(1+R/400)4 x 3/4
⇒ 4630.50 = 4000[(400 + R)/400]3
⇒ 4630.50/4000 = [(400 + R)/400]3
⇒ 9261/8000 = [(400 + R)/400]3
⇒ (21/20)3 = [(400 + R)/400]3
⇒ [(400 + R)/400]/400 = 21/20
⇒ 400 + R = 21 x 20 = 420
∴ R = 420 - 400 = 20%
- A sum of money lent at compound interest for 2 yr at 20 % pa would fetch ₹ 964 more, if the interest was payable half-yearly than if it was payable annually. What is the sum ?
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Let the sum be ₹ P .
Then, CI when compounded half - yearly = [P x (1 + 10/100)4 - P] = 4641P/10000
CI when compounded annually = [ P x (1 + 20/100)2 - P] = 11P/25
According to the question, 4641P/10000 - 11P/25 = 964
⇒ [(4641 - 4400)/10000] x P = 964Correct Option: A
Let the sum be ₹ P .
Then, CI when compounded half - yearly = [P x (1 + 10/100)4 - P] = 4641P/10000
CI when compounded annually = [ P x (1 + 20/100)2 - P] = 11P/25
According to the question, 4641P/10000 - 11P/25 = 964
⇒ [(4641 - 4400)/10000] x P = 964
∴ P = (964 x 10000)/241
= ₹ 40000
- SBI lent ₹ 1331 lakh to the TATA group at compound interest and got ₹1728 lakh after 3 yr. What is the rate of interest charged, if compounded annually?
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According to the question,
1728 = 1331(1 + R/100)3
1728/1331 = (1 + R/100)3
⇒ (12/11)3 = (1 + R/100)3Correct Option: B
According to the question,
1728 = 1331(1 + R/100)3
1728/1331 = (1 + R/100)3
⇒ (12/11)3 = (1 + R/100)3
⇒ 1 + R/100 = 12/11
⇒ R/100 = (12/11) - 1 = 1/11
∴ R = 100/11= 9.09%