Compound Interest
- The compound interest on a sum for 2 years is Rs. 832 and the simple interest on the same sum for the same period is Rs. 800. The difference between the compound and simple interest for 3 years will be ?
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S.I. for first year = Rs. 400
S.I. on Rs .400 for 1 year =Rs. 32
∴ Rate = (interest x 100)/(principle x time) = (100 x 32)/(400 x 1) = 8%
Hence, the difference for 3rd year is S.I.on Rs. 832
= Rs.(832 x 8/100)
= Rs. 66.56Correct Option: C
S.I. for first year = Rs. 400
S.I. on Rs .400 for 1 year =Rs. 32
∴ Rate = (interest x 100)/(principle x time) = (100 x 32)/(400 x 1) = 8%
Hence, the difference for 3rd year is S.I.on Rs. 832
= Rs.(832 x 8/100)
= Rs. 66.56
∴ Total difference = Rs.(32 + 66.56)
= Rs. 98.56
- What is the difference between the compound interest and simple interest calculated on an amount of ₹ 16200 at the end of 3 yr at 25% pa? (Rounded off to two digits after decimal)
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Let required difference be ₹ D.
By formula,
D = P x (R/100)2 x [(3 + R)/100]
⇒ D = 16200 x (25/100)2 x [(3 + 25)/100]Correct Option: D
Let required difference be ₹ D.
By formula,
D = P x (R/100)2 x [(3 + R)/100]
= 16200 x (25/100)2 x [(3 + 25)/100]
= 16200 x 625/10000 x 13/4
= 162 x 625 x 13/4 x 100 = ₹ 3290.63
- A father divided his property between his two sons A and B. A invests the amount at compound interest of 8% per annum and B invests the amount at 10% per annum simple interest. At the end of 2 yr, the interest received by B is ₹ 1336 more than the interest received by A. Find the share of A in the father's property of ₹ 25000. ?
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Suppose A gets ₹ P and B gets ₹ (25000 - P).
Interest received by A at the rate of 8% per annum CI
= P(1 + 8/100)2 - P
Interest received by B at the rate of 10% per annum SI
= [(25000 - P) x 10 x 2]/100 = (25000 - P)/5Correct Option: D
Suppose A gets ₹ P and B gets ₹ (25000 - P).
Interest received by A at the rate of 8% per annum CI
= P(1 + 8/100)2 - P
= P(27/25)2 - P
= 104P/625
Interest received by B at the rate of 10% per annum SI
= [(25000 - P) x 10 x 2]/100 = (25000 - P)/5
According to the question,
(25000 - P)/5 = 104P/(625 + 1336)
∴ P = 10000
- Akash borrows ₹ 65000 at 10% per annum simple interest for 3 yr and lends it at 10% per annum compound interest for 3 yr , Find his gain after three years. ?
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SI on ₹ 65000 at the rate of 10% for 3 yr
= (65000 x 10 x 3)/100 = ₹ 19500
CI on ₹ 65000 at the rate of 10% for 3 yr
= 65000(1 + 10/100)2 - 65000Correct Option: A
SI on ₹ 65000 at the rate of 10% for 3 yr
= (65000 x 10 x 3)/100 = ₹ 19500
CI on ₹ 65000 at the rate of 10% for 3 yr
= 65000(1 + 10/100)2 - 65000
= 65000(11 x 11 x 11 - 10 x 10 x 10)/1000 = ₹ 21515
∴ Required gain = 21515 - 19500 = ₹ 2015
- Divided Rs. 3903 between A and B, so that A's share at the end of 7 years may equal to B's share at the end of 9 years, compound interest being at 4 per cent ?
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We have (A's present share) (1 + 4/100)7 = (B's present share) (1 + 4/100)9
∴ A's present share/B's present share = (1 + 4/100)2 = (26/25)2 = 676/625Correct Option: A
We have (A's present share) (1 + 4/100)7 = (B's present share) (1 + 4/100)9
∴ A's present share/B's present share = (1 + 4/100)2 = (26/25)2 = 676/625
Dividing Rs. 3903 in the ratio of 676 : 625
∴ A's present share = 676/(676 + 625) of Rs .3903 = Rs. 2028
B's present share = Rs. 3903 - Rs. 2028 = Rs. 1875
