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
Find the amount to be paid at the end of 3 years in given case:
Principal = ₹ 1,200 at 12% p.a.
Find the principal which will amount to Rs. 4,000 in 4 years at 6.25% Per annum.
John lent Rs. 2550 to Mohan at 7.5 percent per annum. If Mohan discharges the debt after 8 months by giving an old black and white television and Rs. 1422.50; find the price of the television.
If Manohar pays an interest of Rs. 750 for 2 years on a sum of Rs. 4,500, find the rate of interest.
A sum of ₹ 48,000 was lent out at simple interest and at the end of 2 years and 3 months the total amount was ₹ 55,560. Find the rate of interest per year
The value of a machine depreciates at 10% per year. If the present value is ₹ 1,62,000, what is the worth of the machine after two years?
If a principal is getting doubled after 4 years, then calculate the rate of interest. (Hint: Let P = ₹ 100)
Simple interest on a given amount is always less than or equal to the compound interest on the same amount for the same time period and at the same rate of interest per annum.
Bhavya earns ₹ 50,000 per month and spends 80% of it. Due to pay revision, her monthly income increases by 20% but due to price rise, she has to spend 20% more. Find her new savings.
₹ 9000 becomes ₹ 18000 at simple interest in 8 years. Find the rate per cent per annum.
