Advertisements
Advertisements
Question
Rohit borrowed ₹ 40,000 for 2 years at 10% per annum C.I. and Manish borrowed the same sum for the same time at 10.5% per annum simple interest. Which of these two gets less interest and by how much?
Advertisements
Solution
Sum borrowed (P) = ₹40000
Rate (R) = 10% p.a. compounded annually
Time (T) = 2 years
∴ Interest for the first year =`"PRT"/100`
`=₹(40000xx10xx1)/100`
= ₹4000
Amount after one year = ₹40000 + 4000
= ₹44000
Principal for the second year = ₹44000
∴ Interest for the second year
`=(44000xx10xx1)/100`
= ₹4400
∴ Compound Interest for 2 years = ₹4000 + 4400
= ₹8400
In the second case,
Principal (P) = ₹40000
Rate (R) = 10.5% p.a.
Time (T) = 2 years
∴ Simple Interest = `"PRT"/100=(40000xx10.5xx2)/100`
`=₹(40000xx105xx2)/(100xx10)`
= ₹8400
In both the cases, interest is same.
APPEARS IN
RELATED QUESTIONS
Calculate the amount and compound interest on Rs 18000 for `2 1/2` years at 10% per annum compounded annually.
Find the difference between the compound interest and simple interest. On a sum of Rs 50,000 at 10% per annum for 2 years.
The difference in simple interest and compound interest on a certain sum of money at \[6\frac{2}{3} %\] per annum for 3 years is Rs 46. Determine the sum.
In how many years ₹ 700 will amount to ₹ 847 at a compound interest rate of 10 p.c.p.a.
On a certain sum of money, invested at the rate of 10 percent per annum compounded annually, the interest for the first year plus the interest for the third year is Rs. 2,652. Find the sum.
Find the sum on which the difference between the simple interest and compound interest at the rate of 8% per annum compounded annually would be Rs. 64 in 2 years.
Ashok borrowed Rs. 12,000 at some rate on compound interest. After a year, he paid back Rs.4,000. If the compound interest for the second year is Rs. 920, find:
- The rate of interest charged
- The amount of debt at the end of the second year
If the compound interest is calculated quarterly, the amount is found using the formula __________
Find the compound interest on ₹ 3200 at 2.5% p.a for 2 years, compounded annually
