anil borrowed rupees 500 from a bank. If the bank charges interest 6% per year how much amount shall anil pay after 2years ?
(a) 560
(b) 575
(c) 600
(d) 540
Answers
Answer:
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Class 11
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>>Basics of financial mathematics
>>Accumulation with simple and compound interest
>>I borrowed Rs. 12,000 from Jamshed at 6%
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I borrowed Rs.12,000 from Jamshed at 6% per annum simple interest for 2 years. If I borrowed this sum at 6% per annum compound interest, what extra amount would I have to pay
Medium
Solution
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Given P=Rs.12000N=2R=6%
S.I.=
100
PNR
SI =
100
12000×6×2
=1440
A=SI+P=1440+12000= Rs. 13440
Compound interest:
A=P(1+
100
r
)
n
=12000(1+
100
6
)
(2)
=12000(1.1236)
=Rs.13483.2
Amount =Rs.13483.20
CI=A−P=13483.20−12000
=Rs.1483.20
Extra interest =13483.20−13440=Rs.
Here the principal is given to be Rs. 500
The interest rate is 6% per annum
We have to find the amount to be paid after 2 years
We will first find the interest
simple interest = (p × r × t) / 100
= (500 × 6 × 2) / 100
= 60
so, amount = principal + interest
= 500 + 60
= 560
Hence, the amount to be paid after 2 years will be Rs. 560