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
The interest on a sum of Rs 2000 is being compounded annually at the rate of 4% per annum. Find the period for which the compound interest is Rs 163.20.
A certain sum amounts to Rs. 5,292 in two years and Rs. 5,556.60 in three years, interest being compounded annually. Find : the rate of interest.
Rohit borrowed ₹ 40,000 for 2 years at 10% per annum C.I. and Manish borrowed the same sum for the same time at 10.5% per annum simple interest. Which of these two gets less interest and by how much?
Peter borrows ₹ 12,000 for 2 years at 10% p.a. compound interest. He repays ₹ 8,000 at the end of the first year. Find:
- the amount at the end of the first year, before making the repayment.
- the amount at the end of the first year, after making the repayment.
- the principal for the second year.
- the amount to be paid at the end of the second year, to clear the account.
Find the amount and the compound interest payable annually on the following :
Rs.25000 for 1`(1)/(2)` years at 10% per annum.
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 ___________
Find the compound interest on ₹ 3200 at 2.5% p.a for 2 years, compounded annually
The sum which amounts to ₹ 2662 at 10% p.a in 3 years, compounded yearly is _________
Suppose for the principal P, rate R% and time T, the simple interest is S and compound interest is C. Consider the possibilities.
- C > S
- C = S
- C < S
Then
Compound interest is the interest calculated on the previous year’s amount.
