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 certain sum of money amounts to Rs. 1,008 in 2 years and to Rs. 1, 164 in 3 `1/2` years. Find the sum and the rate of interest.
A sum is divided between A and B in the ratio of 1: 2. A purchased a car from his part, which `14 2/7%` depreciates per annum and B deposited his amount in a bank, which pays him20% interest per annum compounded annually. By what percentage will the total sum of money increase after two years due to this investment pattern (approximately).
There is 60% increase in an amount in 6 year at simple interest. What will be the compound interest of ₹ 12000 after 3 years at the same rate?
What is the difference between the compound interest and simple interest accrued on an amount of ₹12000 at the end of 3 years at the rate of 12%?
A certain sum is lent at x % per annum simple interest for 2 years. Instead, if the amount was lent at 2x% per annum simple interest for y more years, then the interest would have been five times the earlier interest. What is the value of y?
What would be the compound interest on Rs 4200 for 18 months at 10% per annum compounded half-yearly?
The difference between compound interest and simple interest on a sum for 2 years at 8 per cent is ₹ 768. The sum is
At what rate percent per annum with simple interest will a sum of money double in 12.5 years?
Find the rate percent per annum, if ₹2000 amounts to ₹2,315,25 in a year and a half, interest being compounded half-yearly.
A sum of money becomes 1,331 times in 3 years as compound interest. The rate of interest is-
