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 10000 for 1 year at 8% per annum compounded half yearly.
In how many years ₹ 700 will amount to ₹ 847 at a compound interest rate of 10 p.c.p.a.
Mohit invests Rs. 8,000 for 3 years at a certain rate of interest, compounded annually. At the end of one year it amounts to Rs. 9,440. Calculate:
- the rate of interest per annum.
- the amount at the end of the second year.
- the interest accrued in the third year.
The value of a machine depreciated by 10% per year during the first two years and 15% per year during the third year. Express the total depreciation of the machine, as percent, during the three years.
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.
Find the sum on which the difference between the simple interest and compound interest at the rate of 8% per annum compounded annually would be Rs. 64 in 2 years.
Saurabh invests Rs. 48,000 for 7 years at 10% per annum compound interest. Calculate:
(i) the interest for the first year.
(ii) the amount at the end of second year.
(iii) the interest for the third year.
Rohit borrowed ₹ 40,000 for 2 years at 10% per annum C.I. and Manish borrowed the same sum for the same time at 10.5% per annum simple interest. Which of these two gets less interest and by how much?
The difference between simple interest and compound interest compounded annually on a certain sum is Rs.448 for 2 years at 8 percent per annum. Find the sum.
A principal becomes ₹ 2028 in 2 years at 4% p.a compound interest. Find the principal
