Advertisements
Advertisements
Question
The time taken for ₹ 1000 to become ₹ 1331 at 20% p.a, compounded annually is 3 years
Options
True
False
Advertisements
Solution
False
Explanation;
Hint:
Principal money = 1000
Rate of interest = 20%
Amount = 1331, applying in formula we get
A = `(1 + "r"/100)^"n"`
∴ 1331 = `1000(1 + 20/100)^"n"`
`1331/1000 = (1 + 1/5)^"n"`
`1331/1000 = (6/5)^"n"`
∴ n ≠ 3
APPEARS IN
RELATED QUESTIONS
What will Rs 125000 amount to at the rate of 6%, if the interest is calculated after every 3 months?
The interest on a sum of Rs 2000 is being compounded annually at the rate of 4% per annum. Find the period for which the compound interest is Rs 163.20.
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.
On a certain sum of money, invested at the rate of 10 percent per annum compounded annually, the interest for the first year plus the interest for the third year is Rs. 2,652. Find the sum.
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.
The compound interest on ₹ 5000 at 12% p.a for 2 years, compounded annually is ___________
A principal becomes ₹ 2028 in 2 years at 4% p.a compound interest. Find the principal
The number of conversion periods in a year, if the interest on a principal is compounded every two months 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 ______.
