Advertisements
Advertisements
Question
Rohit borrows Rs. 86,000 from Arun for two years at 5% per annum simple interest. He immediately lends out this money to Akshay at 5% compound interest compounded annually for the same period. Calculate Rohit's profit in the transaction at the end of two years.
Advertisements
Solution
P = Rs. 86,000; time = 2 years and rate = 5% p.a.
To calculate S.I.
∴ S.I. = `[ "P" xx "R" xx "T" ]/100 = [ 86,000 xx 5 xx 2 ]/100 = "Rs." 8,600`
To calculate C.I.
∴ C.I. = P`[( 1 + r/100)^n - 1]`
= `86,000[( 1 + 5/100)^2 - 1]`
= `86,000(41/400)` = Rs. 8,815
Profit = C.I. - S.I. = Rs.8,815 - Rs.8,600 = Rs.215
APPEARS IN
RELATED QUESTIONS
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.
Calculate the amount and the compound interest for the following:
Rs.23,7 50 at 12°/o p.a. in `2 1/2` years
Anuj and Rajesh each lent the same sum of money for 2 years at 8% simple interest and compound interest respectively. Rajesh received Rs. 64 more than Anuj. Find the money lent by each and interest received.
Calculate the sum of money on which the compound interest (payable annually) for 2 years be four times the simple interest on Rs. 4,715 for 5 years, both at the rate of 5% per annum.
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.
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.
Rakesh invests Rs.25600 at 5% per annum compound interest payable annually for 3 years. Find the amount standing to his credit at the end of the second year.
A man borrows Rs.20000 at 10% per annum compound interest payable annually. If he repays Rs.5000 at the end of the first year and Rs.10000 at the end of the second year; how much should he pay at the end of the third year in order to clear the account? Find the answer correct to the nearest rupee.
Priyanka lends Rs.15,500 at 10% for the first year, at 15% for the second year and at 20% for the third year. If the rates of interest are compounded yearly, find the difference between the compound interest of the second year and the third year.
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?
