A man borrowed some money from a private organisation at 5% simple interest per annum. He lended this money to another person at 10% compound interest per annum, and made a profit of 26,410 in 4 years. The man borrowed

Correct Answer: 6.5%

Correct Answer: 2.1 years

Explanation:

Let time period of S.I. be T years.

Then for a principal amount, say P,

ATQ, as, S.I. = C.I. for rate =10%p.a. and

time for C.I. = 2(P x 10 x T)/100 = P{[ (100+10)/100 ]2-1}T/10 = [ 110/100 ]2?1 = [(11/10)2?1] = (121-100)/100T/10 = 21/100T = 21/10 = 2.1 years

Correct Answer: 1848

Correct Answer: 7401.22

Explanation:

With slight modifications, the basic formula can be made to deal with compounding at intervals other than annually.

 

Since the compounding is done at six-monthly intervals, 4 per cent (half of 8 per cent) will be added to the value on each occasion.

 

Hence we use r = 0.04. Further, there will be ten additions of interest during the five years, and so n = 10. The formula now gives:

 

V = P(1 + r)10 = 5,000 x (1.04)10 = 7,401.22

 

Thus the value in this instance will be £7,401.22.

 

In a case such as this, the 8 per cent is called a nominal annual

 

rate, and we are actually referring to 4 per cent per six months.

Correct Answer: 14.25

Explanation:

I=prt

Correct Answer: 8500

Correct Answer: 2500

Explanation:

It is given that the initial amount invested in scheme A is Rs P at 10%per Annum S.I. =PTR/100 = P x 10 x 2/100 Now the total amount after 2 years is = 1.2P New Rate of interest = 12% per annum Time = 5 years S.I for next 5 years when new principal amount is 1.2 P = 1.2Px12x5/100 = 0.72P Total amount after 5 years at 12% per annun = 1.72P Given that 1.72P - 1.2P = 1300 P = 1300/0.52 P = Rs. 2500

Correct Answer: 4000

Explanation:

p=(p*4*9)/100-(p*2*12)/100 = 480

=12p/100=480

p=4000

 

Correct Answer: Rs 7000

Correct Answer: 647500

Explanation:

10000/16 = X/4(1*1+2*3+4*9+8*27)

10000/16=X/4(1+6+36+216)

X=647500