Advertisements
Advertisements
Question
Given the principal = Rs 40,000, rate of interest = 8% p.a. compounded annually. Find
- Interest if period is one year.
- Principal for 2nd year.
- Interest for 2nd year.
- Amount if period is 2 years.
Advertisements
Solution
Given, principal (P) = Rs. 40000
Rate of interest (R) = 8% per annum
a. Compound interest for one year,
We know that,
`A = P(1 + R/100)^n`
= `40000(1 + 8/100)^1` ...[∵ n = 1 yr]
= `40000 xx 108/100`
∴ Amount, A = 400 × 108 = Rs. 43200
∴ Compound interest, CI = A – P
= Rs. 43200 – Rs. 40000
= Rs. 3200
b. Amount of 1st year = Principal of 2nd year = Rs. 43200
c. Now, amount for the second year:
`A = P(1 + R/100)^1`
`A = 43200(1 + 8/100)^1`
A = Rs. 46656
Compound interest = Amount – Principal
= Rs. 46656 – Rs. 43200
= Rs. 3456
d. For period of two years, we have already calculated amount = Rs. 46656
APPEARS IN
RELATED QUESTIONS
The simple interest on a certain sum of money is `3/8` of the sum in `6 1/4` years. Find the rate percent charged.
In What time will ₹ 16,500 amount to ₹ 22,935 at 13% per annum?
In what time will ₹ 17800 amount to ₹ 19936 at 6% per annum?
Which among the following rate of interest yields an interest of ₹ 200 for the principle of ₹ 2,000 for one year
In simple interest, a sum of money amounts to ₹ 6,200 in 2 years and ₹ 6,800 in 3 years. Find the principal and rate of interest.
The interest on ₹ 350 at 5% per annum for 73 days is ₹ 35.
The simple interest on a sum of ₹ P for T years at R% per annum is given by the formula: Simple Interest = `(T xx P xx R)/100`.
Interest on ₹ 1200 for `1 1/2` years at the rate of 15% per annum is ₹ 180.
₹ 6400 were lent to Feroz and Rashmi at 15% per annum for `3 1/2` and 5 years respectively. The difference in the interest paid by them is ₹ 150.
A memorial trust donates ₹ 5,00,000 to a school, the interest on which is to be used for awarding 3 scholarships to students obtaining first three positions in the school examination every year. If the donation earns an interest of 12 per cent per annum and the values of the second and third scholarships are ₹ 20,000 and ₹ 15,000 respectively, find out the value of the first scholarship.
