Advertisements
Advertisements
Question
Find the difference between simple and compound interest on Rs 5000 invested for 3 years at 6% p.a., interest payable yearly.
Advertisements
Solution
Case I :
Here P1 = Rs.5000 and r = 6%
So, Amount after 1 year
= `"P"(1 + "r"/100)`
= `5000(1 + 6/100)`
= `5000 xx (106)/(100)`
= 5300
Amount after 2 year
= `"P"(1 + "r"/100)`
= `5300(1 + 6/100)`
= `5300 xx (106)/(100)`
= 5618
Thus, P3 = Rs.5618 and r = 6%
Amount after 3 year
= `"P"(1 + "r"/100)`
= `5618(1+ 6/100)`
= `5618 xx (106)/(100)`
= 5955.08
Hence, Amount = Rs.5955.08
Also, C.I.
= A - P
= Rs.5955.08 - Rs.5000
= Rs. 955.08
Case II :
Simple interest = `(5000 xx 6 xx 3)/(100)`
= 900
Difference between C.I. and S.I.
= Rs.955.08 - Rs.900
= Rs.55.08.
APPEARS IN
RELATED QUESTIONS
Calculate the amount and compound interest on Rs 10800 for 3 years at `12 1/2` % per annum compounded annually.
Calculate the amount and compound interest on Rs 18000 for `2 1/2` years at 10% per annum compounded annually.
Simple interest on a sum of money for 2 years at \[6\frac{1}{2} %\] per annum is Rs 5200. What will be the compound interest on the sum at the same rate for the same period?
Find the compound interest at the rate of 5% per annum for 3 years on that principal which in 3 years at the rate of 5% per annum gives Rs 1200 as simple interest.
The difference between the compound interest and simple interest on a certain sum for 2 years at 7.5% per annum is Rs 360. Find the sum.
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.
The cost of a machine depreciated by Rs. 4,000 during the first year and by Rs. 3,600 during the second year. Calculate :
- The rate of depreciation.
- The original cost of the machine.
- Its cost at the end of the third year.
A man borrows Rs.10,000 at 10% compound interest compounded yearly. At the end of each year, he pays back 30% of the sum borrowed. 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.
Saurabh invests Rs. 48,000 for 7 years at 10% per annum compound interest. Calculate:
(i) the interest for the first year.
(ii) the amount at the end of second year.
(iii) the interest for the third year.
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
On a certain sum of money, lent out at C.I., interests for first, second and third years are Rs. 1,500; Rs. 1,725 and Rs. 2,070 respectively. Find the rate of interest for the (i) second year (ii) third year.
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.
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.
Rekha borrowed Rs. 40,000 for 3 years at 10% per annum compound interest. Calculate the interest paid by her for the second year.
A certain sum of money invested for 5 years at 8% p.a. simple interest earns an interest of ₹ 12,000. Find:
(i) the sum of money.
(ii) the compound interest earned by this money in two years and at 10% p.a. compound interest.
A man borrows Rs 62500 at 8% p.a., simple interest for 2 years. He immediately lends the money out at CI at the same rate and for same time. What is his gain at the end of 2 years?
The compound interest payable annually on a certain sum for 2 years is Rs 40.80 and the simple interest is Rs 40. Find the sum and the rate percent.
The annual rate of growth in population of a town is 10%. If its present population is 26620, then the population 3 years ago was _________
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 ___________
If the present population of a city is P and it increases at the rate of r% p.a, then the population n years ago would be `"P"(1 + "r"/100)^"n"`
Find the compound interest on ₹ 3200 at 2.5% p.a for 2 years, compounded annually
A principal becomes ₹ 2028 in 2 years at 4% p.a compound interest. Find the principal
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 ___________
Suppose a certain sum doubles in 2 years at r % rate of simple interest per annum or at R% rate of interest per annum compounded annually. We have ______.
The compound interest on Rs 50,000 at 4% per annum for 2 years compounded annually 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 ______.
