Advertisements
Advertisements
Question
The compound interest on Rs 50,000 at 4% per annum for 2 years compounded annually is ______.
Options
Rs 4,000
Rs 4,080
Rs 4,280
Rs 4,050
Advertisements
Solution
The compound interest on Rs 50,000 at 4% per annum for 2 years compounded annually is Rs 4,080.
Explanation:
Given, principal (P) = Rs. 50000
Rate of interest (R%) = 4% per annum
Time period (T) = 2 years
We know that,
`A = P(1 + R/100)^T`
∴ `A = 50000(1 + 4/100)^2`
= `50000(1 + 1/25)^2`
= `50000 xx 26/25 xx 26/25`
= 80 × 26 × 26
= Rs 54080
∴ Compound interest, CI = A – P
= Rs 54080 – Rs 50000
= Rs 4080
Hence, Rs 4,080
APPEARS IN
RELATED QUESTIONS
Calculate the amount and compound interest on Rs 8000 for 1 year at 9% per annum compound half yearly. (You could use the year by year calculation using SI formula to verify)
A certain sum amounts to Rs. 5,292 in two years and Rs. 5,556.60 in three years, interest being compounded annually. Find: the original sum.
Geeta borrowed Rs. 15,000 for 18 months at a certain rate of interest compounded semi-annually. If at the end of six months it amounted to Rs. 15,600; calculate :
(i) the rate of interest per annum.
(ii) the total amount of money that Geeta must pay at the end of 18 months in order to clear the account.
During every financial year, the value of a machine depreciates by 12%. Find the original cost of a machine which depreciates by Rs. 2,640 during the second financial year of its purchase.
A sum of Rs. 8,000 is invested for 2 years at 10% per annum compound interest. Calculate:
(i) interest for the first year.
(ii) principal for the second year.
(iii) interest for the second year.
(iv) the final amount at the end of the second year
(v) compound interest earned in 2 years.
Calculate the amount and the compound interest on Rs. 12,000 in 2 years and at 10% per year.
Calculate the compound interest for the second year on Rs. 15000 invested for 5 years at 6% per annum.
A man invests Rs. 9600 at 10% per annum compound interest for 3 years. Calculate :
(i) the interest for the first year.
(ii) the amount at the end of the first year.
(iii) the interest for the second year.
(iv) the interest for the third year. the interest for the first year.
If the compound interest is calculated quarterly, the amount is found using the formula __________
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
