Discussion
The simple interest on Rs. 12000 at a certain rate of interest in five years is Rs. 7200. Find the compound interest on the same amount for two years at the same rate of interest.
Answer: D
\[ A = P\left(1 + \frac{R}{100}\right)^{n}, \qquad \text{CI} = A - P, \qquad \text{SI} = \frac{PRn}{100} \]
Find the rate from the simple-interest statement first.
\[ 7200 = \frac{12000 \times R \times 5}{100} = 600R \quad\Longrightarrow\quad R = 12\% \]
Now compound the same sum for two years:
\[ \text{CI} = 12000\left[(1.12)^{2} - 1\right] = 12000(1.2544 - 1) \]
\[ = 12000 \times 0.2544 = \text{Rs. } 3052.80 \]
Two years of simple interest would be Rs. 2880; the extra Rs. 172.80 is 12% of the first year's Rs. 1440.
No comment is present. Be the first to comment.
Loading…
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development