Advertisements
Advertisements
Question
Calculate the amount and compound interest on Rs 18000 for `2 1/2` years at 10% per annum compounded annually.
Advertisements
Solution
Principal (P) = Rs 18,000
Rate (R) = 10% annual
Number of years (n) = `2 1/2` year
The amount for 2 years and 6 months can be calculated by first calculating the amount for 2 years using the compound interest formula, and then calculating the simple interest for 6 months on the amount obtained at the end of 2 years.
Firstly, the amount for 2 years has to be calculated.
`A = Rs[18000(1 + 1/10)^2] = Rs (18000xx11/10xx11/10)` = Rs 21780
By taking Rs 21780 as principal, the S.I. for the next `1/2` year will be calculated.
S.I = Rs `((21780 xx 1/2 xx 10)/100)` = Rs 1089
∴ Interest for the first 2 years = Rs (21780 − 18000) = Rs 3780
And interest for the next `1/2` year = Rs 1089
∴ Total C.I. = Rs 3780 + Rs 1089 = Rs 4,869
A = P + C.I. = Rs 18000 + Rs 4869 = Rs 22,869
RELATED QUESTIONS
Calculate the amount and compound interest on Rs 8000 for 1 year at 9% per annum compound half yearly. (You could use the year by year calculation using SI formula to verify)
Mohit invests Rs. 8,000 for 3 years at a certain rate of interest, compounded annually. At the end of one year it amounts to Rs. 9,440. Calculate:
- the rate of interest per annum.
- the amount at the end of the second year.
- the interest accrued in the third year.
A man borrows Rs.10,000 at 10% compound interest compounded yearly. At the end of each year, he pays back 20% of the amount for that year. How much money is left unpaid just after the second year ?
A man borrowed Rs. 20,000 for 2 years at 8% per year compound interest. Calculate :
(i) the interest of the first year.
(ii) the interest of the second year.
(iii) the final amount at the end of the second year.
(iv) the compound interest of two years.
Calculate the compound interest on Rs. 15,000 in 3 years; if the rates of interest for successive years be 6%, 8%, and 10% respectively.
The difference between the C.I and S.I for 2 years for a principal of ₹ 5000 at the rate of interest 8% p.a is ___________
The present value of a machine is ₹ 16800. It depreciates at 25% p.a. Its worth after 2 years is ₹ 9450
Find the C.I. on ₹ 15000 for 3 years if the rates of interest are 15%, 20% and 25% for the I, II and III years respectively
The number of conversion periods in a year, if the interest on a principal is compounded every two months is ___________
A sum is taken for two years at 16% p.a. If interest is compounded after every three months, the number of times for which interest is charged in 2 years is ______.
