Advertisements
Advertisements
Question
Calculate the compound interest on Rs. 5,000 in 2 years; if the rates of interest for successive years be 10% and 12% respectively.
Advertisements
Solution
For 1st year
Principal (P) = Rs. 5,000, Rate (R) = 10%, Time (T) = 1 year
∴ Interest = `(5,000xx10xx1)/100` = 50 × 10 = Rs. 500
∴ Amount at the end of 1st year = Rs. (5000 + 500) = Rs. 5500
For 2nd year
P = Rs. 5500, Rate = 12%, T = 1 year
∴ Interest = `(5500xx12xx1)/100` = 55 × 12 = Rs. 660
∴ Amount at the end of 2nd year = Rs. 5500 + Rs. 660 = Rs. 6160
Hence compound interest = Rs. 6160 − Rs. 5000 = Rs. 1160
APPEARS IN
RELATED QUESTIONS
Find the amount and the compound interest.
| No. | Principal (₹) | Rate (p.c.p.a.) | Duration (Years) |
| 1 | 2000 | 5 | 2 |
| 2 | 5000 | 8 | 3 |
| 3 | 4000 | 7.5 | 2 |
The compound interest, calculated yearly, on a certain sum of money for the second year is Rs. 1,089 and for the third year it is Rs. 1,197.90. Calculate the rate of interest and the sum of money.
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 ?
Find the sum on which the difference between the simple interest and compound interest at the rate of 8% per annum compounded annually would be Rs. 64 in 2 years.
Ashok borrowed Rs. 12,000 at some rate on compound interest. After a year, he paid back Rs.4,000. If the compound interest for the second year is Rs. 920, find:
- The rate of interest charged
- The amount of debt at the end of the second year
Mohan borrowed Rs. 16,000 for 3 years at 5% per annum compound interest. Calculate the amount that Mohan will pay at the end of 3 years.
A man invests Rs. 9600 at 10% per annum compound interest for 3 years. Calculate :
(i) the interest for the first year.
(ii) the amount at the end of the first year.
(iii) the interest for the second year.
(iv) the interest for the third year. the interest for the first year.
The difference between C.I. payable annually and S.I. on Rs.50,000 for two years is Rs.125 at the same rate of interest per annum. Find the rate of interest.
The compound interest on ₹ 8000 at 10% p.a for 1 year, compounded half yearly is ____________
Find the difference between Compound Interest and Simple Interest on Rs 45,000 at 12% per annum for 5 years.
