Question : An amount of money appreciates to Rs. 7,000 after 4 years and to Rs. 10,000 after 8 years at a certain compound interest annually. The initial amount of money was:
Option 1: Rs. 4,700
Option 2: Rs. 4,900
Option 3: Rs. 4,100
Option 4: Rs. 4,300
New: SSC MTS 2024 Application Form OUT; Direct Link
Don't Miss: Month-wise Current Affairs | Upcoming Government Exams
New: Unlock 10% OFF on PTE Academic. Use Code: 'C360SPL10'
Correct Answer: Rs. 4,900
Solution : Given: An amount of money appreciates to Rs. 7000 after 4 years and to Rs. 10000 after 8 years. When compounded annually, $ 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. So, $7000= P(1+\frac{R}{100})^{4}$ ------------------(i) ⇒ $10000= P(1+\frac{R}{100})^{8}$ -----------------(ii) On dividing (ii) by (i) we get, ⇒ $(1+\frac{R}{100})^{4} = \frac{10}{7}$ Now substituting this value in equation (i), we get, ⇒ $P \times (1+\frac{R}{100})^{4} = 7000$ ⇒ $P \times \frac{10}{7} = 7000$ $\therefore P = 4900$ Hence, the correct answer is Rs. 4,900.
Application | Cutoff | Selection Process | Preparation Tips | Eligibility | Exam Pattern | Admit Card
Question : The amount received on a certain sum after 3 years and 5 years on compound interest (compounding annually) is Rs. 20,736 and Rs. 29,859.84 respectively. What is that sum?
Question : A certain sum of money amounts to 3 times itself in 13 years when interest is compounded annually at a certain interest rate per annum. In how many years will the initial sum amount to 9 times itself at the same interest rate per annum, also compounded annually?
Question : A sum of Rs. 3000 becomes Rs, 4320 in 2 years at a certain rate of compound interest (compounding annually). How much this sum will become after 4 years?
Question : The difference between simple interest and compound interest (compounding of interest is done annually) on a certain sum of money for 3 years at the rate of 20 percent per annum is Rs. 192. What is the sum?
Question : Find the sum of money invested by a man in a scheme that offers compound interest(compounding annually) at a 6% rate of interest per annum if compound interest for 2 years is Rs. 618.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile