Advertisements
Advertisements
Question
At what rate percent compound interest, does a sum of money become 1.44 times of itself in 2 years?
Advertisements
Solution
Let Principal = Rs. y
Then Amount = Rs 1.44y
n = 2 years
∴ Amount = `P(1 + r/100 )^n`
⇒ `1.44y = y( 1 + r/100)^2`
⇒ `[1.44y]/y = (1 + r/100)^2`
⇒ `36/25 = (1 + r/100)^2`
⇒ `(6/5 )^2 = (1 + r/100)^2`
On comparing,
`6/5 = 1 + r/100`
On solving, we get
r = 20 %
APPEARS IN
RELATED QUESTIONS
Calculate the amount of Rs. 15,000 is lent at compound interest for 2 years and the rates for the successive years are 8% and 10% respectively.
Calculate the compound interest accrued on Rs. 6,000 in 3 years, compounded yearly, if the rates for the successive years are 5%, 8% and 10% respectively.
On what sum of money will the compound interest for 2 years at 5% per annum amount to Rs. 768.75?
Find the sum on which the compound interest for 3 years at 10% per annum amounts to Rs. 1,655.
At what per cent per annum will Rs. 6,000 amount to Rs. 6,615 in 2 years when interest is compounded annually?
At what rate percent will a sum of Rs. 4,000 yield Rs.1,324 as compound interest in 3 years?
Find the time, in years, in which Rs. 4,000 will produce Rs. 630.50 as compound interest at 5% compounded annually.
Divide Rs. 28,730 between A and B so that when their shares are lent out at 10% compound interest compounded per year, the amount that A receives in 3 years is the same as what B receives in 5 years.
A sum of Rs 44,200 is divided between John and Smith, 12 years and 14 years old respectively, in such a way that if their portions be invested at 10% per annum compound interest, they will receive equal amounts on reaching 16 years of age.
(i) What is the share of each out of Rs44,200 ?
(ii) What will each receive, when 16years old ?
Find the difference between compound interest and simple interest on Rs. 8,000 in 2 years and at 5% per annum.
