Shantanu borrowed Rs. 2.5 lakh from a bank to purchase one car. If the rate of interest be 6% per annum compounded annually, what payment (approximately) will he have to make after 2 years 6 months?
A certain amount of money is lent out at compound interest at the rate of 20% per annum for two years, compounded annually. It would give Rs. 482 more if the amount is compounded half yearly. Find the principle.
Approach I: To solve this question, we can apply the net % effect formula
x + y +
xy
%
100
Compounded annually at rate 20% per annum for 2 years, we get
= 20 + 20 +
20 × 20
= 44%
100
Similarly, compounded half yearly at rate 10%, we get
= 10 + 10 +
10 × 10
= 21%
100
And, 21 + 10 +
21 × 10
= 33.1%
100
And, 33.1 + 10 +
33.1 × 10
= 46.41%
100
Now as per the question,
Difference between compound interest yearly and half yearly = 46.41 – 44 = 2.41%
Given, 2.41% ≡ 482
100% ≡ x
⇒ x =
482 × 100
= 20,000
2.41
Approach II:
When compounded annually, the amount received at the end of the period is
A = P
[
1 +
r
]
^{n}
100
When compounded half yearly, the amount received at the end of the period is
A = P
[
1 +
r/2
]
^{2n}
100
Let the principle be P.
Interest on this amount when compounded annually at the rate of 20% per annum = P [(1.20)^{2} − 1]
Interest on this amount when compounded half yearly = P [(1.10)^{4} − 1]
A man gave 50% of his savings of Rs 67,280 to his wife and divided the remaining sum between his two sons A and B of 14 and 12 years of age respectively. He divided it in such a way that each of his sons, when they attain the age of 18 years, would receive the same amount at 5% compound interest per annum. The share of B was
Aditya and Bhushan invested 10000 each in scheme A and scheme B respectively for 3 years. Scheme A offers Simple interest @ 12% per annum and scheme B offers compound interest @ 10%. After 3 years, who will have larger amount and by how much?
A sum of Rs. 9960 was borrowed at 15/2% per annum compound interest and paid back in two years in two equal annual installments. What was the amount of each installment?