Answer: Option D. -> 10% Answer: (d)Using Rule 1,If A = Amount, P = Principal, r = Rate of Compound Interest (C.I.), n = no. of years then,A=P$(1 + r/100)^n$, C.I. = A - PC.I. = P$[(1 + r/100)^n - 1]$
Question 703. The principal, which will amount to Rs.270.40 in 2 years at the rate of 4% per annum compound interest, is
Answer: Option C. -> Rs.250 Answer: (c)Using Rule 1,Let the principal be Rs.P.270.40 = P $(1 + 4/100)^2$270.40 = P $(1 + 0.04)^2$P = ${270.40}/{1.04 × 1.04}$ = Rs.250
Question 704. A certain sum of money yields Rs.1261 as compound interest for 3 years at 5% per annum. The sum is
Answer: Option B. -> 1$1/2$ years Answer: (b)Using Rule 1,If A = Amount, P = Principal, r = Rate of Compound Interest (C.I.), n = no. of years then,A=P$(1 + r/100)^n$, C.I. = A - PC.I. = P$[(1 + r/100)^n - 1]$
Question 706. A man saves Rs.2000 at the end of each year and invests the money at 5% compound interest. At the end of 3 years he will have :
Question 707. A loan of Rs.12,300 at 5% per annum compound interest, is to be repaid in two equal annual instalments at the end of every year. Find the amount of each instalment.
Answer: Option D. -> Rs.6,615 Answer: (d)Using Rule 9(i),Let each instalment be x.$x/(1 + 5/100) + x/(1 + 5/100)^2 = 12300$${20x}/21 + (20/21)^2x = 12300$${20x}/21(1 + 20/21)$ = 12300${20x}/21 × 41/21 × x = 12300$$x = {12300 × 21 × 21}/{20 × 41}$ ⇒ x = 6615
Question 708. Rs. 16,820 is divided between two brothers of age 27 years and 25 years. They invested their money at 5% per annum compound interest in such a way that both will receive equal money at the age of 40 years. The share (in Rs.) of elder brother is
Question 709. A sum of money is paid back in two annual instalments of Rs. 17, 640 each, allowing 5% compound interest compounded annually. The sum borrowed was
Answer: Option B. -> Rs.32,800 Answer: (b)Using Rule 9(i),Sum borrowed = Present worth of Rs.17640 due 1 year hence + Present worth of Rs.17640 due 2 years hence= Rs.$(17640/{(1 + 5/100)} + 17640/{(1 + 5/100)^2})$= Rs.$(17640 × 20/21 + 17640 × 20/21 × 20/21)$= Rs.(16800 + 16000) = Rs.32800
Question 710. A man buys a scooter on making a cash down payment of Rs.16224 and promises to pay two more yearly instalments of equivalent amount in next two years. If the rate of interest is 4% per annum, compounded yearly, the cash value of the scooter, is
Answer: Option D. -> Rs.46824 Answer: (d)Using Rule 1,If A = Amount, P = Principal, r = Rate of Compound Interest (C.I.), n = no. of years then,A=P$(1 + r/100)^n$, C.I. = A - PC.I. = P$[(1 + r/100)^n - 1]$
