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Calculate the compound interest on Rs.5000 for 3 years at 8% per annum compounded annually.Answer VerifiedHint: To find the amount, we use the formula \[A = P{\left[ {1 + \dfrac{r}{{100}}} \right]^n}\] where, A is the amount, P is principal amount, r is the rate percent yearly and n is the number of years. Since, all the values are known and it is given, hence by substituting the values in the above formula we get the required amount. Complete step-by-step solution: Thus the correct answer is \[ C.I = Rs.1298.56\] Note: The compound interest is interest calculated on the amount that includes principal and accumulated interest of the previous period whereas simple interest is interest on the invested amount for the entire period. This is the difference between the simple interest and compound interest. To find the value of amount where principal amount, rate of interest and time is known we use the standard formula \[A = P{\left[ {1 + \dfrac{r}{{100}}} \right]^n}\] to determine the value of A. We can also determine the compound interest by subtracting the initial principal amount from the amount. Find the compound interest on a sum of Rs. 8000 for 3/2 year at a rate of 20%, When the rate is calculated half-yearly.
Answer (Detailed Solution Below)Option 3 : Rs. 2648 Free 10 Questions 10 Marks 7 Mins Given: Sum = Rs. 8000 Time = 3/2 years Rate = 20% Concept used: When the rate is calculated half-yearly, R becomes R/2. T becomes 2T. Formula used: A = P(1 + R/100)T C.I. = A - P Where, A = Amount, C.I. = Compound interest, P = Principal or Sum, R = Rate of interest, T = Time Calculation: According to the question, R = 20%/2 = 10% T = 2 × 3/2 = 3 years A = P(1 + R/100)T ⇒ A = 8000 × (1 + 10/100)3 ⇒ A = 8000 × (11/10)3 ⇒ A = 8 × 1331 ⇒ A = Rs. 10648 Now, C.I. = A - P ⇒ C.I. = 10648 - 8000 ⇒ C.I. = Rs. 2648 ∴ The compound interest is Rs. 2648. Important Points Tree method for calculation of compound interest a) When compound interest is calculated for 2 years, C.I. = 2A + B b) When compound interest is calculated for 3 years, C.I. = 3A + 3B + C c) When compound interest is calculated for 4 years C.I. = 4A + 6B + 4C + D A = R% of P B = R% of A C = R% fo B D = R% of C According to the question, P = Rs. 8000 R = 10% T = 3 years The compound interest for 3 years, C.I. = 3A + 3B + C ----(1) A = 10% of P ⇒ A = 10% of 8000 ⇒ A = Rs 800 ----(2) B = 10% of A ⇒ B = 10% of 800 ⇒ B = Rs. 80 ----(3) C = 10% of B ⇒ C = 10% of 80 ⇒ C = Rs. 8 ----(4) From equation (1) C.I. = 3A + 3B + C Now, put the value of equation (2), (3) and (4) ⇒ C.I. = 3 × 800 + 3 × 80 + 8 ⇒ C.I. = 2400 + 240 + 8 ⇒ C.I. = Rs. 2648 ∴ The compound interest is Rs. 2648. Last updated on Sep 21, 2022 The RRB (Railway Recruitment Board) has released the Result, and Cut Off marks for the CBAT (Computer Based Aptitude Test) stage for Pay Level 6. The result and cut-off marks are announced for the RRB Chandigarh, Bhopal & Chennai regions for the recruitment cycle 2021. The exam is conducted to fill up a total number of 35281 vacant posts. Candidates who are qualified for the Computer Based Aptitude Test will be eligible for the next round, which will be Document Verification & Medical Exam. The candidates with successful selection under RRB NTPC will get a salary range between Rs. 19,900 to Rs. 35,400. Know the RRB NTPC Result here. Let's discuss the concepts related to Interest and Compound Interest. Explore more from Quantitative Aptitude here. Learn now! What would be the compound interest on Rupees 8700 at 15 1 by 4% per annum for 2 years compounded annually?(11109 − 8000) = Rs. 3109.
What will be the compound interest of Rs 8000 at 15% per annum compounded annually for 2 years 4 months?Compound interest = ₹ 11109 - ₹ 8000 = ₹ 3109. Q. Find compound interest on Rs. 8000 at 15% per annum for 2 years 4 months, compounded annually.
What is the simple interest on Rs 8000 at 15% per annum for 2 years?11109 - 8000 = Rs. 3109.
What is the difference between CI and SI on 8000 at 15% per annum for 2 years?The difference between CI and SI on Rs. 8000 for 2yr is Rs. 20.
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