Advertisements
Advertisements
Question
Nikita invests Rs.6,000 for two years at a certain rate of interest compounded annually. At the end of first year it amounts to Rs.6,720. Calculate:
(a) The rate of interest.
(b) The amount at the end of the second year.
Advertisements
Solution
Let X % be the rate of interest.
P = Rs. 6,000, n = 2 years, A = Rs.6,720
For the first year
A = P`( 1 + r/100)^n`
⇒ 6,720 = 6,000`( 1 + "X"/100 )^1`
⇒ 6,720 - 6,000 = 60X
⇒ X = 12
The rate of interest is X % = 12 %.
The amount at the end of the second year.
A = P`( 1 + r/100)^n`
⇒ A = 6,000`( 1 + 12/100 )^2`
⇒ A = 6,000`( 112/100 )^2`
⇒ A = 7,526.40
The amount at the end of the second year = Rs. 7,526.40
APPEARS IN
RELATED QUESTIONS
The present population of the town is 2,00,000. The population is increased by 10% in the first year and 15% in the second year. Find the population of the town at the end of two years.
Calculate the amount and the compound interest for the following:
Rs.10,000 at 8°/o p.a. in `2 1/4` years
Calculate the amount and the compound interest for the following:
Rs.40, 000 at `5 1/4` % p.a. in `1 1/3` years
Calculate the amount and the compound interest for the following:
Rs. 76, 000 at 10 °/o p.a. in `2 1/2` years
Find the compound interest to the nearest rupee on Rs. 10,800 for `2 1/2` years at 10% per annum.
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.
The simple interest on a certain sum of money for 3 years at 5% per annum is Rs.1,200. Find the amount and the compound interest due on this sum of money at the same rate and after 2 years. Interest is reckoned annually.
A man invests Rs 24000 for two years at compound interest, If his money amounts to Rs 27600 after one year, find the amount at the end of second year.
How much will Rs 14000 amounts to 2 years at compound interest, if the rates for the successive years be 5% and 8% respectively?
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.
