Advertisements
Advertisements
Question
Suppose a certain sum doubles in 2 years at r % rate of simple interest per annum or at R% rate of interest per annum compounded annually. We have ______.
Options
r < R
R < r
R = r
can’t be decided
Advertisements
Solution
Suppose a certain sum doubles in 2 years at r % rate of simple interest per annum or at R% rate of interest per annum compounded annually. We have R < r.
Explanation:
If the total amount received after 2 years is same for both simple interest and compound interest on same principal, then the rate of simple interest is greater than the rate of compound interest.
i.e. R < r
Hence, R < r
APPEARS IN
RELATED QUESTIONS
Find the compound interest at the rate of 5% for three years on that principal which in three years at the rate of 5% per annum gives Rs 12000 as simple interest.
In how many years ₹ 700 will amount to ₹ 847 at a compound interest rate of 10 p.c.p.a.
The cost of a machine depreciated by Rs. 4,000 during the first year and by Rs. 3,600 during the second year. Calculate :
- The rate of depreciation.
- The original cost of the machine.
- Its cost at the end of the third year.
Calculate the difference between the compound interest and the simple interest on ₹ 7,500 in two years and at 8% per annum.
Calculate the difference between the compound interest and the simple interest on ₹ 8,000 in three years and at 10% per annum.
Find the amount and the compound interest payable annually on the following :
Rs.25000 for 1`(1)/(2)` years at 10% per annum.
The annual rate of growth in population of a town is 10%. If its present population is 26620, then the population 3 years ago was _________
If the present population of a city is P and it increases at the rate of r% p.a, then the population n years ago would be `"P"(1 + "r"/100)^"n"`
Suppose for the principal P, rate R% and time T, the simple interest is S and compound interest is C. Consider the possibilities.
- C > S
- C = S
- C < S
Then
Find the difference between Compound Interest and Simple Interest on Rs 45,000 at 12% per annum for 5 years.
