Advertisements
Advertisements
Question
The difference between Simple Interest and Compound Interest on Rs. 500 for 1 year at 10% per annum, reckoned half-yearly is
Options
Rs. 1
Rs. 1.25
Rs. 1.5
Rs. 2
Advertisements
Solution
Rs. 1.25
Explanation:
As interest is compounded half-yearly.
∴ rate`=10/2` = 5% half-yearly
time = 1 year = 2 half-yearly
Compound interest`=500xx[(1+5/100)^2-1]`
and simple interest`=(500xx5xx2)/100`
Difference`=500xx[(1+5/100)^2-1]-(500 xx5xx2 ) /100`
`=500xx25/(100xx100)=5/4=₨. 1.25`
APPEARS IN
RELATED QUESTIONS
A person borrows ₹ 5000 for 2 yr at 4% per annum simple interest. He immediately lends it to another person at `6 1/4` per annum for 2 yr. Find his gain in the transaction per year.
An automobile financier claims to be lending money at simple interest, but he includes the interest every six months for calculating the principal. If he is charging an interest of 10%. the effective rate of interest becomes
A bank offers 5% compound interest calculated on a half-yearly basis. A customer deposits ₹1600 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is
The difference between compound interest and simple interest on an amount of ₹15000 for 2 years is ₹96. What is the rate of interest per annum?
A certain sum of money becomes three times itself in 20 years at simple interest. In how many years does it become double of itself at the same rate of simple interest?
A man gets a simple interest of Rs. 2,000 on a certain principal at the rate of 5% p.a. in 4 years. What compound interest will the man get on twice the principal in 2 years at the same rate?
A man invested `1/3` of his capital at 7%; `1/4` at 8% and the remainder at 10%. If his annual income is ₹ 561, the capital is
The difference between C.l. and S.I. on ₹16000 for 1 year at 10% p.a. reckoned half-yearly is-
The ratio of the amount for 3 years under C.I. annually and for one year under S.I. is 36:25. If the same rate of interest is charged then find the rate-
The simple interest accrued in 2 years on a principal of ₹24000 is one-eighth of the principal. What is the rate of simple interest p.c.p.a.?
