Question

calulate the amount and the compound interest on Rs. aa4600 in 2 years when the rate of interest is 12%​

Answer 1

Answer:

Compound Interest

You have learned about the simple interest and formula for calculating simple interest and amount. Now, we shall discuss the concept of compound interest and the method of calculating the compound interest and the amount at the end of a certain specified period. We shall also study the population growth and depreciation of the value of movable and immovable assets.

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Introduction to Ratios

Introduction to Percentage

Applications of Compound Interest Hin

Solve

Questions

A man lends Rs. 12,50012,500 at 1212% for the first year, at 1515% for the second year and at 1818% for the third year. If the rates of interest are compounded yearly; find the difference between the C.I. for the first year and the compound interest for the third year.

1 Verified answer

Find the compound interest on Rs 24000 at 15% per annum for 2\dfrac { 1 }{ 3 }2  

3

1

​  

 years.

1 Verified answer

At what rate percent per annum compound interest will Rs. 1000010000 amount to Rs. 1331013310 in three years?

1 Verified answer

VIEW MORE

 

Compound Interest

If the borrower and the lender agree to fix up an interval of time (say, a year or a half year or a quarter of a year etc) so that the amount (Principal + interest) at the end of an interval becomes the principal for the next interval, then the total interest over all the intervals, calculated in this way is called the compound interest and is abbreviated as C.I.

Compound interest at the end of a certain specified period is equal to the difference between the amount at the end of the period and original principal i.e. C.I. = Amount – Principal. In this section, we shall discuss some examples to explain the meaning and the computation of compound interest. Compound interest when interest is compounded annually.

Compound Interest

Example 1

Find the compound interest on Rs 1000 for two years at 4% per annum.

Solution: Principal for the first year =Rs 1000

S

I

=

P

×

R

×

T

100

S

I

f

o

r

1

s

t

y

e

a

r

=

1000

×

4

×

1

100

S

I

f

o

r

1

s

t

y

e

a

r

=

R

s

40

Amount at the end of first year =Rs1000 + Rs 40 = Rs 1040. Principal for the second year = Rs1040

S

I

f

o

r

2

n

d

y

e

a

r

=

1040

×

4

×

1

100

S

I

f

o

r

2

n

d

y

e

a

r

=

R

s

41.60

Amount at the end of second year,  

A

m

o

u

n

t

=

R

s

1040

+

R

s

41.60

=

R

s

1081.60

Therefore,

C

o

m

p

o

u

n

d

i

n

t

e

r

e

s

t

=

R

s

(

1081.60

–

1000

)

=

R

s

81.60

Remark: The compound interest can also be computed by adding the interest for each year.Compound Interest

You have learned about the simple interest and formula for calculating simple interest and amount. Now, we shall discuss the concept of compound interest and the method of calculating the compound interest and the amount at the end of a certain specified period. We shall also study the population growth and depreciation of the value of movable and immovable assets.

Suggested Videos

Play

Play

Play

ArrowArrow

ArrowArrow

Introduction to Ratios

Introduction to Percentage

Applications of Compound Interest Hin

Solve

Questions

A man lends Rs. 12,50012,500 at 1212% for the first year, at 1515% for the second year and at 1818% for the third year. If the rates of interest are compounded yearly; find the difference between the C.I. for the first year and the compound interest for the third year.

1 Verified answer

Find the compound interest on Rs 24000 at 15% per annum for 2\dfrac { 1 }{ 3 }2  

3

1

​  

 years.

1 Verified answer

At what rate percent per annum compound interest will Rs. 1000010000 amount to Rs. 1331013310 in three years?

1 Verified answer

VIEW MORE

 

Compound Interest

If the borrower and the lender agree to fix up an interval of time (say, a year or a half year or a quarter of a year etc) so that the amount (Principal + interest) at the end of an interval becomes the principal for the next interval, then the total interest over all the intervals, calculated in this way is called the compound interest and is abbreviated as C.I.

Compound interest at the end of a certain specified period is equal to the difference between the amount at the end of the period and original principal i.e. C.I. = Amount – Principal. In this section, we shall discuss some examples to explain the meaning and the computation of compound interest. Compound interest when interest is compounded annually.

Compound Interest

Example 1

Find the compound interest on Rs 1000 for two years at 4% per annum.

Solution: Principal for the first year =Rs 1000

S

I

=

P

×

R

×

T

100

S

I

f

o

r

1

s

t

y

e

a

r

=

1000

×

4

×

1

100

S

I

f

o

r

1

s

t

y

e

a

r

=

R

s

40

Amount at the end of first year =Rs1000 + Rs 40 = Rs 1040. Principal for the second year = Rs1040

S

I

f

o

r

2

n

d

y

e

a

r

=

1040

×

4

×

1

100

S

I

f

o

r

2

n

d

y

e

a

r

=

R

s

41.60

Amount at the end of second year,  

A

m

o

u

n

t

=

R

s

1040

+

R

s

41.60

=

R

s

1081.60

Therefore,

C

o

m

p

o

u

n

d

i

n

t

e

r

e

s

t

=

R

s

(

1081.60

–

1000

)

=

R

s

81.60

Remark: The compound interest can also be computed by adding the interest for each year.

Answer 2

Step-by-step explanation:

$4600 \times 2 \times 12 \div 100$

=Rs 110,400

A=4600+110,400

=115000