Rs. 5,000 is invested at a 5% simple interest. If the interest is added to the principal after every 10 years, will the amount become Rs. 10,000?
I am assuming interest is compounded every yearThe formula for compound interest is pretty simple. In your case a simplified calculation with a yearly compounding it is1.05^10 = 1.628. So your 5000 will be 1.628 times or rather 8140.A savings bank interest is credited every quarter. So the interest rate is 5/4 = 1.25% per quarter and the no of time periods are 10*4 = 40.The formula will be 1.0125^40= 1.6436 or RS 8218.Simple interest will be merely 250 per year..2500 for ten years = you get back 7500.
At what rate of interest would Rs 6500 double in a period of ten years?
6500*(1+r)^10 = 13000 (1+r)^10 = 2 1+r=2^(.1) = 1.07177 r=.07177 or a rate of 7.177%
At what rate of simple interest will Rs. 1,000 amount to Rs. 1200 in two years?
SI = PNR/100SI=SIMPLE INTERESTP=PRINCIPALN=NUMBER OF YEARSR= RATE OF INTERESTFrom the question,P+SI=1200 , P=1000 & N=21000+SI=1200That is SI=1200–1000SI=200.Now put all the above in the formula.SI=PNR/100200= (1000*2*R)/10020000=2000RNow, R = 20000/2000R=10So, At 10% rate of simple interest will Rs.1000/- amount to Rs.1200/- in 2 years.
At what rate of simple interest will a sum of money double itself in 8 years?
Why maximum people here complicting the problem. It is very simple, apply some logic.
A part of a sum of Rs. 9000 is invested at 4 percent per annum and the rest of 7 percent per annum. The whole interest received in 5 years was Rs. 2325. How much was the money lent at 4 percent per annum?
Mixtures & Alligations by K S Narayanan on PostsInterest received per annum if entire 9000 given @ 4% = 360Interest received per annum if entire 9000 given @ 7% = 630Actual interest received per year = 2325/5 = 465Now, apply the Principle of Alligation:The amount of Rs 9000 will be divided in the ratio 165:105 or 11:79000 x 11/18 = 5500 @ 4%9000 x 7/18 = 3500 @ 7%Check :5500 @ 4% x 5 = 11003500 @ 7% x 5 = 1225Total interest = 1100 + 1225 = 2325
What is the compound interest on Rs. 5000 for 3 years at 8% for the first year, 10% for the second year, and 12% for the third year?
Compound Interest on Rs.5,000 for 3 years [assuming compounding is done once in a year and no repayment]1st year interest at 8% = 400 ===> New Principal at 1st year end 5,400/-2nd year interest at 10% = 540 ===> New Principal at 2nd year end 5,940/-3rd year interest at 12% = 712.80 ===> New Principal at 3rd year end 6,652.80
At what rate of interest will simple interest be half the principal in 5 years?
Let the principal be PThen, according to the question let the simple interest be S.I= P/2Let rate of interest be rHere time, t= 5 yearsWe know, S.I = P*r*t/100=> P/2= P*r*5/100=> R= 10Hence the rate of interest would be 10%
What is the compound interest on Rs. 8,000 at 15% per annum for 2 years and 4 months, compounded annually?
Principal amount = 8000Interest for first year = 15% of 8000 = 1200So new principal after 1 st year = 8000+1200 = 9200Interest for second year = 15% of 9200 = 1380So new principal after 2 nd year = 9200+1380 = 10580interest for 4 months(1/3 years) = 5% of 10580 = 529So interest after 2 years 4 months = 1200+1380+529 = 3109
At what rate percent per annum compound interest will Rs 1250 amount to Rs 1800 in two year?
S.I=1800–1250=750S.I=PRT/100750=1250×R×2/100750×10/(125×2)=RR=30%To confirm this answer - S.I=PRT/100=1250×30×2/100=750Amount=principal + S.I=1250+750=1800