At what rate will ₹3000 amount to₹3360 in 3 years
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A principal of Rs. 3000 amounts to Rs. 3360 in 2 years when compounded at a certain rate of interest. How much will the same principal amount if it was compounded semi-annually?
1
3370.80
Incorrect
2
3720
3
3400
4
3500
5
None of these
Correct Answer
Solution: 5
Formula for CI :
A=P(1+r100)tA=P(1+r100)t
Where A is the amount at the end of time t,
P is the Principal,
t is time,
r is rate
Given, a principal of Rs. 3000 amounts to Rs. 3360 in 2 years when compounded at a certain rate of interest.
⇒3360=3000(1+r100)2⇒3360=3000(1+r100)2
⇒1.12=(1+r100)2⇒1.12=(1+r100)2
⇒1.058=1+r100⇒1.058=1+r100
⇒ r = 5.8 %
If it was compounded semi annually
A=P(1+r2×100)t×2A=P(1+r2×100)t×2
A=3000(1+5.8100×2)(2×2)A=3000(1+5.8100×2)(2×2)
⇒ A = 3000 (1 + 0.029)4
⇒ A = 3000 × 1.1211
⇒ A = 3363.43
SINCE 360 INCREASED IN 3YRS
HOPE IT HELPS