Compound Interest

A deposited Rs 6000 in a bank at 5% Per annum simple interest. B deposited Rs 5000 at 8% P.a Compound interest. After 2 years the difference between their interest will be:_________?

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A deposited Rs 6000 in a bank at 5% Per annum simple interest. B deposited Rs 5000 at 8% P.a Compound interest. After 2 years the difference between their interest will be:_________?

A. Rs 230
B. Rs 232
C. Rs 600
D. Rs 832
Explanation:
S.I = Rs (6000 × 5/100×2)=Rs 600
C.I = Rs [5000 × (1+8/100)2-5000]
= Rs [(5000 × 27/25 ×27/25)-5000]
=Rs (5832-5000)=Rs 832
(c.I) – (S.I) = Rs (832-600) = Rs 232

The difference between compound interest and simple interest on Rs 8000 at 5% P.a for 3 years is_________?

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The difference between compound interest and simple interest on Rs 8000 at 5% P.a for 3 years is_________?

A. Rs 50
B. Rs 60
C. Rs 61
D. Rs 600
Explanation:
S.I = Rs(8000 × 5/100 ×3) = Rs 1200
C.I = Rs [8000 × (1+5/100)3– 8000
= Rs [(8000 × 21/20×21/20×21/20)-8000]
=Rs (9261-8000)=Rs 1261
(c.I)-(S.I) = Rs (1261 – 1200) = Rs61.

A sum of money becomes Rs.6690 after three years and Rs.10.035 after six years on compound interest. The sum is________?

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A sum of money becomes Rs.6690 after three years and Rs.10.035 after six years on compound interest. The sum is________?

A. Rs.4400
B. Rs.4445
C. Rs.4460
D. Rs.4520
Explanation:
Sum be P
P(1 + R/100)3 = 6690 – (i)
P(1 + R/100)2 = 10, 035 – (ii)
By dividing (i) and (ii)
(1 + R/100)3 = 10035/6690 = 3/2
Therefore, P = (6690 x 2/3) = Rs. 4460

A sum amounts to Rs. 2916 in 2 years and to Rs.3149.28 in 3 years at compound Interest. The sum is_________?

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A sum amounts to Rs. 2916 in 2 years and to Rs.3149.28 in 3 years at compound Interest. The sum is_________?

A. Rs.1500
B. Rs.2000
C. Rs.2500
D. Rs.3000
Explanation:
P be the principle and R % per annum be rate
P(1 + R/100)3 = 3149.28 – (i)
P(1 + R/100)2 = 2916 – (ii)
By dividing (i) and (ii)
(1 + R/100) = 3149.28/2916 R/100 = 233.28/2916
or R =233.28/2916 x 100 = 8 %
P(1 +8/100)2 = 2916 or
P × 27/25 × 27/25 = 2916
Or = 1822500/729= Rs.2500

A sum of money amounts to Rs. 10648 in 3years and Rs. 9680 in 2 years. The rate of interest is_________?

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A sum of money amounts to Rs. 10648 in 3years and Rs. 9680 in 2 years. The rate of interest is_________?

A. 5 %
B. 10 %
C. 15 %
D. 20 %
Explanation:
P be the principle and R % Per annum be the rate.
P(1 + R/100) 3 = 10648 – (i)
P(1 + R/100) 2 = 9680 – (ii)
By dividing (i) and (ii)
(1 +R/100) = 10648/9680 Or
R/100 = 968/9680 = 1/10 or
R = 10 %

The difference between simple interest and compound interest at the same rate for Rs.5000 for 2 years is Rs. 72. The rate of interest is?

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The difference between simple interest and compound interest at the same rate for Rs.5000 for 2 years is Rs. 72. The rate of interest is?

A. 10 %
B. 12 %
C. 6 %
D. 8 %
Explanation:
5000 × (1 +R/100) 2 – 5000 –(10000R/100)= 72
=> 5000 [(1 + R/100) 2 – 1 – R/50] = 72
=> 1 + R2/100 + 2R/100 – 1 – R/50 = 72/5000
=> R2 = (72/5000 × 10000) = 144 or R =12%

The compound interest on a certain sum of money for 2 years at 10 % per annum is Rs.420. The simple interest on the same sum at the same rate and for the same time will be_______?

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The compound interest on a certain sum of money for 2 years at 10 % per annum is Rs.420. The simple interest on the same sum at the same rate and for the same time will be_______?

A. Rs.350
B. Rs.375
C. Rs. 380
D. Rs. 400
Explanation:
The principle is P.
P(1 +10/100)2 – P = 420
=> P = Rs.2000
S.I = Rs.(4000/100) = Rs.400

The difference between the compound interest and the simple interest on a certain sum at 5 % per annum for 2 years is Rs. 1.50. The sum is_______?

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The difference between the compound interest and the simple interest on a certain sum at 5 % per annum for 2 years is Rs. 1.50. The sum is_______?

A. Rs.600
B. Rs.500
C. Rs.400
D. Rs.300
Explanation:
Sum be Rs.100
S.I = Rs.(1000/100) =Rs.10
C.I = Rs.[{100 × (1 +5/100) 2} – 100] =Rs.41/4
Difference C.I amd S. I = Rs.(41/4 – 10) =Rs.25
25 : 1.50 : : 100 : x
Therefore x = ((1.50 ×100)/25) = Rs.600