Compound Interest

A property decreases in value every year at the rate of 6 1/4% of its value at the beginning of the year its value at the end of 3 years was Rs.21093. Find its value at the beginning of the first year?

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A property decreases in value every year at the rate of 6 1/4% of its value at the beginning of the year its value at the end of 3 years was Rs.21093. Find its value at the beginning of the first year?

A. Rs.25600.24
B. Rs.32000.50
C. Rs.18060.36
D. Rs.18600
Explanation:
6 1/4% = 1/16
x *15/16 * 15/16 * 15/16 = 21093
x = 25600.24

Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 4000 for 2 years at 10% per annum. The sum placed on simple interest is:_______?

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Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 4000 for 2 years at 10% per annum. The sum placed on simple interest is:_______?

A. Rs. 1550
B. Rs. 1650
C. Rs. 1750
D. Rs. 2000

At what rate of interest will be Rs 20000 becomes Rs 24200 after 2 years when interest is compounded annually?

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At what rate of interest will be Rs 20000 becomes Rs 24200 after 2 years when interest is compounded annually?

A. 5%
B. 6%
C. 10%
D. 15%
Explanation:
P = Rs 20000, A =Rs 24200,
t = 2 years 20000 × (1 + R/100)2 = 24200
=> (1 + R/100)2 = 24200/20000 = 121/100 = (11/10) 2
=> 1 + R/100 = 11/10
=> R/100 = (11/10 – 1) = 1/10
=> R = (100 × 1/10) % p.a = 10 % p.a
Hence, Rate = 10 % p.a