A man gets a simple interest of Rs.500 on a certain principal at the rate of 5% p.a in two years. Find the compound interest the man will get on twice the principal in two years at the same rate.

Compound Interest 14/01/2021

A. Rs.500
B. Rs.250
C. Rs.5012.50
D. Rs.5062.50
E. None of these.

Explanation:

Let the principal be Rs.P

S.I at 5% p.a in 8 years on Rs.P = Rs.500
(P)(8)(5)/100 = 500
P = 1250
C.I on Rs.2P i.e., Rs.2500 at 5% p.a in two years
=2500{ [1 + 5/100]2 – 1} = 2500{ 212 – 202 /202}
= 2500/400(441 – 400)
= 25/4(41) = 1025/4 = Rs.256.25

Related Mcqs:

    The compound interest on a certain sum of money for 2 years at 10 % per annum is Rs.420. The simple interest on the same sum at the same rate and for the same time will be_______?
    A. Rs.350 B. Rs.375 C. Rs. 380 D. Rs. 400...
    The difference between the simple interest and the compound interest on Rs 5000 at 10% P.a for 3 years is:_______?
    A. Rs 145 B. Rs 150 C. Rs 165 D. Rs 180 E. None of these...
    The difference between simple and compound interest (compounded-annually) on a sum of money for 2 years at 10% per annum is Rs 65. The sum is_________?
    A. Rs 6500 B. Rs 6565 C. Rs 65065 D. Rs 65650...
    A sum amount to Rs.1344 in two years at simple interest. What will be the compound interest on the same sum at the same rate of interest for the same period?
    A. Rs.150 B. Rs.140 C. Rs.130 D. Data insufficient for the answer...
    Shohaib invested Rs. 8000 in a scheme for 2 years at compound interest rate 5% p.a. How much amount will Shohaib get on maturity of the fixed deposit?
    A. Rs. 8600 B. Rs. 8620 C. Rs. 8800 D. Rs. 8840 E. None of these...

Leave a Reply

Your email address will not be published. Required fields are marked *