Find the amount and the compound interest on Rs. 8000 at 5% per annum for 2 years, compounded annually.
(a) Rs. 700
(b) Rs. 720
(c) Rs. 820
(d)Rs. 800
(e) None of these
Solution: (c)
Principal (P)=Rs. 8000
Rate of interest (R)=5% per annum
Time (n)=2 years
Total amount on compounded annually,
Amount= \(\displaystyle =P\times {{\left( {1+\frac{r}{{100}}} \right)}^{n}}\)
\(\displaystyle \begin{array}{l}=8000\times {{\left( {1+\frac{5}{{100}}} \right)}^{2}}\\=8000\times {{\left( {\frac{{21}}{{20}}} \right)}^{2}}\\=8000\times \frac{{21}}{{20}}\times \frac{{21}}{{20}}\\=Rs.820\end{array}\)
\(\displaystyle \Rightarrow \)C.I=A−P
=Rs. 8820−Rs. 8000
=Rs. 820
Therefore, the amount is Rs. 8820 and compound interest is Rs. 820.
The compound interest accrued on an amount at the end of two years at the rate of 16 p.c.p.a. is ₹3041.28. What is the amount?
The compound interest on a certain sum of money at 5% per annum for 2 years is Rs 246. The simple interest on the same sum for 3 years at 6% per annum is ?
(a) Rs. 430
(b) Rs. 432
(c) Rs. 435
(d) Rs. 432
(e) Rs. 450
Solution: (b)
Effective rate of CI for 2 years
\(\displaystyle =5+5+\frac{{5\times 5}}{{100}}\)
=10.25 %
Effective rate of SI for 3 years= 6×3 = 18%
Required SI=\(\displaystyle \frac{{246}}{{10.25}}\times 18\)
=Rs. 432
Alternate method,
CI = Rs. 246, R = 5%, T = 2 years
CI = A – P
\(\displaystyle \begin{array}{l}246=P{{\left( {1+\frac{5}{{100}}} \right)}^{2}}-P\\246=P{{\left( {\frac{{21}}{{20}}} \right)}^{2}}-P\\246=P\left[ {{{{\left( {\frac{{21}}{{20}}} \right)}}^{2}}-1} \right]\\246=P\frac{{41}}{{400}}\\P=\frac{{246\times 400}}{{41}}\\=Rs.2400\end{array}\)
Now, P = Rs. 2400, R = 6%, T = 3 years
SI= \(\displaystyle \frac{{2400\times 6\times 3}}{{100}}\)
=432
A certain some of money and Rs. 2420 in 2 years and Rs. 2662 in 3 years at same rate of compound interest, compounded annually. The rate of interest per annum is?
A sum of Rs. 13360 was borrowed at 8 \(\displaystyle \frac{3}{4}\) % per annum compound interest and paid back in two years in two equal annual installments. What was the amount of each installment?
(a) Rs. 6769
(b) Rs. 7569
(c) Rs. 6009
(d) Rs. 7009
(e) None of these
Solution: (b)
Let each installment be x
P=13360
Rate o interest=8\(\displaystyle \frac{3}{4}\)
=\(\displaystyle \frac{35}{4}\)%
\(\displaystyle \begin{array}{l}\Rightarrow \frac{x}{{{{{\left( {1+\frac{{35}}{{100}}} \right)}}^{2}}}}+\frac{x}{{\left( {1+\frac{{35}}{{100}}} \right)}}=13360\\\Rightarrow \frac{{6400x+6960x}}{{7569}}=13360\\\Rightarrow 13360x=13360\times 7569\\x=7569\end{array}\)