Advertisements
Advertisements
Question
Rs.16,000 is invested at 5% compound interest compounded per annum. Use the table, given below, to find the amount in 4 years.
| Year ↓ |
Initial amount (Rs.) |
Interest (Rs.) |
Final amount (Rs.) |
| 1st | 16,000 | 800 | 16,800 |
| 2nd | ........... | ........... | ........... |
| 3rd | ........... | ........... | ........... |
| 4th | ........... | ........... | ........... |
| 5th | ........... | ........... | ........... |
Advertisements
Solution
| Year ↓ |
Initial amount (Rs.) |
Interest (Rs.) |
Final amount (Rs.) |
| 1st | 16,000 | 800 | 16,800 |
| 2nd | 16,800 | 840 | 17,640 |
| 3rd | 17,640 | 882 | 18,522 |
| 4th | 18,522 | 926.10 | 19,448.10 |
| 5th | 19,448.10 | 972.405 | 20,420.505 |
1. P = ₹ 16,000, R = 5%
For 1st year
I = `(PxxRxxT)/100`
= `(16000xx5xx1)/100`
= ₹ 800
A1 = P + I
= 16000 + 800
= 16800
2. For 2nd year
P = ₹ 16,800, R = 5%, T = 1
I2 = `(16800xx5xx1)/100`
I2 = ₹ 840
A2 = P2 + I2
= 16800 + 840
= 17640
3. For 3rd year
P = 17640, R = 5%
I3 = `(17640xx5xx1)/100`
= 882
A3 = P3 + I3
= 17640 + 882
= 18522
4. For 4th year
P = 18522, R = 5%
I4 = `(18522xx5xx1)/100`
= 9261
A4 = 18522 + 926.1
= 19448.10
5. For 5th year
P5 = 19448.10, R = 5%
I5 = `(19448.10xx5xx1)/100`
= `97240.5/100`
= 972.40
A5 = 19448.10 + 972.40
= 20420.50
Thus, the amount in 4 years is Rs. 19448.10.
APPEARS IN
RELATED QUESTIONS
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.
A sum of Rs. 65000 is invested for 3 years at 8 % p.a. compound interest.
Find the sum due at the end of the second year.
Alisha invested Rs 75000 for 4 years at 8 % p.a. compound interest,
Find the interest earned in the third year.
Mohan invested a certain sum at compound interest, compounded annually. If the interests for two successive years were Rs 600 and Rs 648, calculate the rate of interest and the sum invested.
Calculate the amount and the compound interest on:
Rs. 8,000 in `2 1/2` years at 15% per year.
A borrowed Rs. 2,500 from B at 12% per annum compound interest. After 2 years, A gave Rs. 2,936 and a watch to B to clear the account. Find the cost of the watch.
Meenal lends Rs. 75,000 at C.I. for 3 years. If the rate of interest for the first two years is 15% per year and for the third year it is 16%, calculate the sum Meenal will get at the end of the third year.
Calculate the difference between the simple interest and the compound interest on Rs. 4,000 in 2 years at 8% per annum compounded yearly.
A man borrows Rs. 6,000 at 5% C.I. per annum. If he repays Rs. 1,200 at the end of each year, find the amount of the loan outstanding at the beginning of the third year.
A man borrows Rs. 10,000 at 5% per annum compound interest. He repays 35% of the sum borrowed at the end of the first year and 42% of the sum borrowed at the end of the second year. How much must he pay at the end of the third year in order to clear the debt ?
