Q. Peter borrows Rs. 12000 for 2 years at 10% p.a. compound interest. He repays Rs. 8000 at the end of first year. Find: Show
A money lender borrows INR 40000 at 3% interest rate and lends the same amount at 9% interest rate what is the interest earned by the money lender after 3 years in this transaction if the interest is compounded yearly. (Approximate values for easy calculation)
Answer (Detailed Solution Below)Option 2 : 8320 Formula used: (i) Compouded Amount A = P(1 + R) T (ii) A = P (1 + R) T Given: (i) P = 40000, (ii) R = 3%, (iii) T = 3 Years Calculations: ⇒ A = 40000 (1 + 0.03) 3 ––––((1.03)3 = 1.092727 ≈ 1.09) ⇒ A = 40000 (1.09) ⇒ A = 43680 CI = 43680 – 40000 = 3680 For P = 40000, R = 9%, T = 3 Years ⇒ A = 40000(1 + 0.09) 3 ------ ((1.09)3 = 1.2950 ≈ 1.30) ⇒ A = 40000(1.30) ⇒ A = 52000 ⇒ CI = 52000 – 40000 = 12000 Interest earned = 12000 – 3680 Interest earned = 8320 Ace your Interest preparations for Compound Interest with us and master Quantitative Aptitude for your exams. Learn today! What is the interest earned if Rs. 40000 is compounded annually at 12.5% p.a. for 2 years?
Answer (Detailed Solution Below)Option 5 : Rs. 10625
Free IBPS Clerk All India Full Mock Test 100 Questions 100 Marks 60 Mins Given: Principal = Rs. 40000 Rate% = 12.5% Time = 2 years Formula used: \(CI = P × \left[ {{{\left( {1 + \frac{R}{{100}}} \right)}^n}-1} \right]\) Calculation: \(CI = P × \left[ {{{\left( {1 + \frac{R}{{100}}} \right)}^n}-1} \right]\) \(⇒ CI = 40000 × \left[ { {{\left( {1 + \frac{12.5}{{100}}} \right)}^2}-1} \right]\) ⇒ CI = 40000 × [(1 + 1/8)2 – 1 ] ⇒ CI = 40000 × (81/64 – 1) ⇒ CI = 40000 × (17/64) ∴ CI is Rs. 10625 Latest IBPS Clerk Updates Last updated on Sep 21, 2022 IBPS Mains Admit Card has been released on 29th September 2022. The candidates who are qualified in the Prelims are eligible to attend the Mains examination. The mains exam is going to be held on 8th October 2022. Earlier, the IBPS Clerk Prelims Result was released on 21st September 2022. The selection process for the IBPS Clerk exam consists of two stages - Prelims & Mains exam. A total number of 6035 vacancies are available for the IBPS Clerk recruitment. The finally appointed candidates will be entitled to a pay scale of INR 11,765 to INR 31,540. Stay updated with the Quantitative Aptitude questions & answers with Testbook. Know more about Interest and ace the concept of Compound Interest. ClearTax offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. ClearTax serves 2.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India. Efiling Income Tax Returns(ITR) is made easy with ClearTax platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing. CAs, experts and businesses can get GST ready with ClearTax GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. ClearTax can also help you in getting your business registered for Goods & Services Tax Law. Save taxes with ClearTax by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download ClearTax App to file returns from your mobile phone. What would be the appropriate interest earned after 3 years from a principal of 40000?40,000 at the end of three years is Rs. 12,000.
What is the rate of simple interest if the sum of Rs 40000 is invested?40,000. Rate of interest equals to 5% per annum and total compound interest calculated for time period 'n' equals to Rs. 44,100. So, rate = 5100 .
What would be the interest earned after 3 years from a principal of 40000 deposited at a rate of 9% per annum compounded annually?40,000 at 9% per annum is Rs. 7524.
What is the compound interest accrued on an amount of Rs 12000 at the rate of 9% per annum at the end of 2 years?∴ Compound Interest is Rs. 1230.
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