Question : A sum of money becomes INR 35,680 after 3 years and INR 53,520 after 6 years at a certain rate percentage p.a., interest compounded yearly. What is the compound interest on the same sum in the first case? (Your answer should be nearest to an integer)
Option 1: INR 11,983
Option 2: INR 11,893
Option 3: INR 10,842
Option 4: INR 11,938
Correct Answer: INR 11,893
Solution : Amount after 6 years = INR 53,520 Amount after 3 years = INR 35,680 Principal for next 3 years = INR 35,680 Principal = $P$ We know that, $ A= P(1+\frac{R}{100})^{T}$, Where $A$ is the total amount, $P$ is the principal amount, $R$ is the rate of interest per annum, and $T$ is the time in years. For 1st case: $35680= P(1+\frac{R}{100})^{3}$ ⇒ $\frac{35680}{P}= (1+\frac{R}{100})^{3}$............................(1) For 2nd case: ⇒ $ 53520= 35680(1+\frac{R}{100})^{3}$ ⇒ $ \frac{53520}{35680}=(1+\frac{R}{100})^{3}$............................(2) From equation 1 and 2, we get: ⇒ $\frac{35680}{P}= \frac{53520}{35680}$ ⇒ $P= \frac{35680\times35680}{53520}$ ⇒ $P$ = INR 23,786.66 Compound interest for first 3 years = 35,680 – 23,786.66 = 11,893.34 = 11,893 (nearest integer) Hence, the correct answer is INR 11,893.
Result | Eligibility | Application | Selection Process | Cutoff | Admit Card | Preparation Tips
Question : What is the compound interest on a sum of INR 25,000 after three years at a rate of 12% per annum interest compounded yearly?
Question : The compound interest amounts on a certain sum at a certain rate percentage p.a. for the second year and third year are INR 3,300 and INR 3,630, respectively. What is the amount of the same sum at the same rate in $2 \frac{1}{2}$ years, interest compounded yearly?
Question : What is the compound interest on a sum of INR 37,500 for $1 \frac{1}{3}$ years at a rate of 12% p.a. if the interest is compounded 8 - monthly?
Question : A sum of money amounts to INR 1,200 in 2 years and becomes INR 1,260 in 3 years at compound interest when interest is compounded annually. What is the rate of compound interest per annum?
Question : The compound interest on a certain sum invested for 2 years at 10% per annum is INR 1,522.50, the interest being compounded yearly. The sum is:
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile