Advertisements
Advertisements
Question
Mr Lalit invested Rs. 5000 at a certain rate of interest, compounded annually for two years. At the end of the first year, it amounts to Rs. 5325. Calculate
1) The rate of interest
2) The amount at the end of the second year, to the nearest rupee.
Advertisements
Solution
1) P = Rs. 5000, T = 1 year, A =Rs. 5325
I = A - P
⇒ I = 5325 - 5000
⇒ I = 325
So, the interest at the end of first year is Rs. 325.
`I = (PRT)/100`
`=> R = (I xx100)/(PxxT)`
`=> R = (325 xx 100)/(5000 xx 1)`
`=> R = 32500/5000 = 6.5%`
So,the rate of interest at the end of the first year is 6.5 %
2) The amount at the end of the first year will be the principal for the second year.
P = Rs. 5325, T = 1 year, R = 6.5%
`I = (PRT)/100`
`=> I = (5325 xx 6.5 × 1)/100`
`=> I = 346.125`
A = P + I
⇒ A =5325 + 346.125
⇒ A =5671.125
⇒ A ≈ Rs 5671
So, the amount at the end of the second year is Rs. 5671.
APPEARS IN
RELATED QUESTIONS
The compound interest, calculated yearly, on a certain sum of money for the second year is Rs. 1320 and for the third year is Rs. 1452. Calculate the rate of interest and the original sum of money
In what period of time will Rs. 12,000 yield Rs. 3972 as compound interest at 10% per annum, if compounded on a yearly basis?
Calculate the amount and the compound interest for the following:
Rs.30,000 at 8°/o p.a. in `2 1/2` years
Calculate the amount and the compound interest for the following:
Rs.10,000 at 8°/o p.a. in `2 1/4` years
The value of a machine, purchased two years ago, depreciates at the annual rate of 10%. If its present value is Rs.97,200, find:
- Its value after 2 years.
- Its value when it was purchased.
A sum of money was invested for 3 years, interest being compounded annually. The rates for successive years were 10%, 15% and 18% respectively. If the compound interest for the second year amounted to Rs. 4,950, find the sum invested.
A sum of money is invested at 10% per annum compounded half yearly. If the difference of amounts at the end of 6 months and 12 months is Rs.189, find the sum of money invested.
Find the difference between the compound interest and simple interest on Rs 20,000 at 12% per annum for 3 years, the compound interest being payable annually.
Ankita bought a gold ring worth Rs.x. The value of the ring increased at 10% per year compounded annually, on which the appreciation for the first year plus the appreciation for the second year amounts to Rs.6300. Find the value of the ring.
How much will Rs 25000 amount to in 2 years at compound interest, if the rates for 1st and 2nd years be 4% and 5% p.a. respectively?
