Question : A sum of money invested at 20% compound interest (compounded annually). It would fetch Rs. 723 more in 2 years if interest is compounded half-yearly. The sum is:
Option 1: Rs. 15,000
Option 2: Rs. 30,000
Option 3: Rs. 20,000
Option 4: Rs. 7,500

Question

Question : The difference between simple and compound Interest compounded annually on a certain sum of money for 2 years at 4% per annum is Rs. 8. The sum is:
Option 1: Rs. 10,000
Option 2: Rs. 20,000
Option 3: Rs. 5,000
Option 4: Rs. 15,000

14 Views

Answer 1

Correct Answer: Rs. 30,000

Solution : We have,
$R = 20 %$ , and $T = 2$ .
Let the principal be Rs. $P$ .
When interest is compounded annually,
$Compound interest = P [(1 + \frac{R}{100})^{t} - 1]$
$C I = P [(1 + \frac{20}{100})^{2} - 1]$
$C I = P [(\frac{6}{5})^{2} - 1] = \frac{11 P}{25}$
When the interest is compounded half-yearly,
$C I = P [(1 + \frac{10}{100})^{4} - 1]$
$C I = P [(\frac{11}{10})^{2} - 1]$
$C I = P [(\frac{14641}{10000}) - 1] = \frac{4641 P}{10000}$
From the question,
$\Rightarrow \frac{4641 P}{10000} - \frac{11 P}{25} = 723$
$\Rightarrow \frac{4641 P - 4400 P}{10000} = 723$
$\Rightarrow \frac{241 P}{10000} = 723$
$\Rightarrow P = 30000$
Hence, the correct answer is Rs. 30,000.

Exams

Colleges

Predictors

Resources

Quick links

Exams

Colleges & Courses

Predictors

Resources

Exams

Colleges

Predictors & E-Books

Resources

Engineering Preparation

Medical Preparation

Law Preparation

MBA Preparation

Exams

Colleges

Resources

Exams

Colleges

Predictors & Articles

Resources

Exams

Colleges

Predictors

Resources

Exams

Colleges

Upcoming Events

Resources

Exams

Colleges

Resources

Quick Links

Top Streams

Specializations

Resources

Top Providers

Exams

Colleges

Resources

Diploma Colleges

Exams

Colleges

Resources

Exams

Resources

Top Courses & Careers

Colleges

Exams

Upcoming Events

Resources

Other Exams

Exams

Colleges

Top Countries

Resources

Exams

Top Schools

Products & Resources

NCERT Study Material

Popular Searches

Question : A sum of money invested at 20% compound interest (compounded annually). It would fetch Rs. 723 more in 2 years if interest is compounded half-yearly. The sum is:Option 1: Rs. 15,000Option 2: Rs. 30,000Option 3: Rs. 20,000Option 4: Rs. 7,500

Related Questions

Know More about

Upcoming Exams

Trending Articles around SSC CGL

Download Careers360 App

All this at the convenience of your phone

Scan and download the app

Sign In/Sign Up

Question : A sum of money invested at 20% compound interest (compounded annually). It would fetch Rs. 723 more in 2 years if interest is compounded half-yearly. The sum is:
Option 1: Rs. 15,000
Option 2: Rs. 30,000
Option 3: Rs. 20,000
Option 4: Rs. 7,500