Advertisements
Advertisements
Question
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
Options
only (i) is correct.
either (i) or (ii) is correct.
either (ii) or (iii) is correct.
only (iii) is correct.
Advertisements
Solution
Only C > S.
Explanation:
Let the principal (P) = Rs. 100
Rate of interest (R) = 100% and time period (T) = 2 yr
Then, simple interest = `(P xx R xx T)/100`
= `(100 xx 10 xx 2)/100`
= ₹ 20
We know that,
`A = P(1 + R/100)^T`
= `100(1 + 10/100)^2`
= `100 xx 11/10 xx 11/10`
= ₹ 21
∴ Compound interest, CI = A – P
= ₹ 121 – ₹ 100
= ₹ 21
So, C > S
Hence, C > S
APPEARS IN
RELATED QUESTIONS
Calculate the amount and compound interest on Rs 10800 for 3 years at `12 1/2` % per annum compounded annually.
Find the compound interest at the rate of 5% per annum for 3 years on that principal which in 3 years at the rate of 5% per annum gives Rs 1200 as simple interest.
In how much time would Rs 5000 amount to Rs 6655 at 10% per annum compound interest?
Rachna borrows Rs. 12,000 at 10 percent per annum interest compounded half-yearly. She repays Rs. 4,000 at the end of every six months. Calculate the third payment she has to make at end of 18 months in order to clear the entire loan.
A certain sum of money invested for 5 years at 8% p.a. simple interest earns an interest of ₹ 12,000. Find:
(i) the sum of money.
(ii) the compound interest earned by this money in two years and at 10% p.a. compound interest.
In how many years will ₹ 3375 become ₹ 4096 at `13 1/3` p.a if the interest is compounded half-yearly?
The sum which amounts to ₹ 2662 at 10% p.a in 3 years, compounded yearly is _________
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 ______.
Find the difference between Compound Interest and Simple Interest on Rs 45,000 at 12% per annum for 5 years.
