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
What rate gives ₹ 280 as interest on a sum of ₹ 56,000 in 2 years?
In the first year on an investment of Rs 6,00,000 the loss is 5% and in the second year the gain is 10%, the net result is ______.
Rajni and Mohini deposited ₹ 3000 and ₹ 4000 in a company at the rate of 10% per annum for 3 years and `2 1/2` years respectively. The difference of the amounts received by them will be ______.
Interest on ₹ 3000 at 10% per annum for a period of 3 years is ______.
Interest on ₹ 12500 at 18% per annum for a period of 2 years and 4 months is ______.
The interest on ₹ 350 at 5% per annum for 73 days is ₹ 35.
Radhika borrowed ₹ 12000 from her friends. Out of which ₹ 4000 were borrowed at 18% and the remaining at 15% rate of interest per annum. What is the total interest after 3 years?
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.
₹ 9000 becomes ₹ 18000 at simple interest in 8 years. Find the rate per cent per annum.
In how many years will the simple interest on a certain sum be 4.05 times the principal at 13.5 per cent per annum?
