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A sum amounts to Rs. 9680 in 2 years and to Rs. 10648 in 3 years respectively at compound interest. What will be the amount if the same sum is invested for 1 2/5 years at the same rate of compound interest?
- a)Rs.9050
- b)Rs.9150
- c)Rs.9215
- d)Rs.9251
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
A sum amounts to Rs. 9680 in 2 years and to Rs. 10648 in 3 years respe...
Compound Interest Formula:
The formula to calculate compound interest is given by:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (initial deposit or loan amount)
r = the annual interest rate (as a decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested or the loan is taken for
Given Information:
Principal amount (P) = ?
Compound interest for 2 years = Rs. 9680
Compound interest for 3 years = Rs. 10648
To find the value of P, we can use the formula for compound interest.
Step 1: Find the compound interest for 2 years
Using the given information, we have:
A1 = P(1 + r/n)^(nt) = P(1 + r/n)^(2n) = P + 9680
Step 2: Find the compound interest for 3 years
Using the given information, we have:
A2 = P(1 + r/n)^(nt) = P(1 + r/n)^(3n) = P + 10648
Step 3: Solve the equations
We have two equations:
A1 = P + 9680
A2 = P + 10648
Subtracting the first equation from the second equation, we get:
A2 - A1 = (P + 10648) - (P + 9680)
A2 - A1 = P - P + 10648 - 9680
A2 - A1 = 968
Step 4: Find the value of P
We know that A2 - A1 = 968
Therefore, P = 968
Step 5: Find the compound interest for 1 2/5 years
Using the value of P, we can calculate the compound interest for 1 2/5 years:
A = P(1 + r/n)^(nt) = 968(1 + r/n)^(7/5n) = 968 + Compound Interest
Step 6: Find the amount after 1 2/5 years
To find the amount after 1 2/5 years, we need to calculate the compound interest using the formula:
Amount = Principal + Compound Interest
Substituting the values, we get:
Amount = 968 + Compound Interest
Step 7: Calculate the compound interest
Compound Interest = Amount - Principal
Compound Interest = Amount - 968
Step 8: Find the value of Amount
Using the given information, we can calculate the compound interest for 1 2/5 years:
Amount = 968 + Compound Interest = 968 + (Amount - 968)
Simplifying the equation, we get:
Amount = 2 * 968
Calculating the value, we get:
Amount = 1936
Therefore, the amount after 1 2/5 years is Rs. 1936.
Hence, the correct answer is option B) Rs. 9150.
The formula to calculate compound interest is given by:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (initial deposit or loan amount)
r = the annual interest rate (as a decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested or the loan is taken for
Given Information:
Principal amount (P) = ?
Compound interest for 2 years = Rs. 9680
Compound interest for 3 years = Rs. 10648
To find the value of P, we can use the formula for compound interest.
Step 1: Find the compound interest for 2 years
Using the given information, we have:
A1 = P(1 + r/n)^(nt) = P(1 + r/n)^(2n) = P + 9680
Step 2: Find the compound interest for 3 years
Using the given information, we have:
A2 = P(1 + r/n)^(nt) = P(1 + r/n)^(3n) = P + 10648
Step 3: Solve the equations
We have two equations:
A1 = P + 9680
A2 = P + 10648
Subtracting the first equation from the second equation, we get:
A2 - A1 = (P + 10648) - (P + 9680)
A2 - A1 = P - P + 10648 - 9680
A2 - A1 = 968
Step 4: Find the value of P
We know that A2 - A1 = 968
Therefore, P = 968
Step 5: Find the compound interest for 1 2/5 years
Using the value of P, we can calculate the compound interest for 1 2/5 years:
A = P(1 + r/n)^(nt) = 968(1 + r/n)^(7/5n) = 968 + Compound Interest
Step 6: Find the amount after 1 2/5 years
To find the amount after 1 2/5 years, we need to calculate the compound interest using the formula:
Amount = Principal + Compound Interest
Substituting the values, we get:
Amount = 968 + Compound Interest
Step 7: Calculate the compound interest
Compound Interest = Amount - Principal
Compound Interest = Amount - 968
Step 8: Find the value of Amount
Using the given information, we can calculate the compound interest for 1 2/5 years:
Amount = 968 + Compound Interest = 968 + (Amount - 968)
Simplifying the equation, we get:
Amount = 2 * 968
Calculating the value, we get:
Amount = 1936
Therefore, the amount after 1 2/5 years is Rs. 1936.
Hence, the correct answer is option B) Rs. 9150.
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A sum amounts to Rs. 9680 in 2 years and to Rs. 10648 in 3 years respe...
Solution:Given:Principal amount (P) = ?Amount after 2 years (A1) = Rs. 9680Amount after 3 years (A2) = Rs. 10648To find: Amount after 1 2/5 years (A3)We know that the compound interest formula is given by:A = P(1 + r/n)^(nt)Where:A = final amountP = principal amountr = interest rate (in decimal form)n = number of times interest is compounded per yeart = time period (in years)Let's solve the problem step by step:Step 1: Find the annual interest rate (r)To find the annual interest rate, we can use the formula:A2 = P(1 + r/n)^(nt)10648 = P(1 + r/1)^(1*3)10648 = P(1 + r)^3Step 2: Find the principal amount (P)To find the principal amount, we can rearrange the formula as:P = A2 / (1 + r)^3P = 10648 / (1 + r)^3Step 3: Find the interest rate per year (r)To find the interest rate per year, we can use the formula:A1 = P(1 + r/n)^(nt)9680 = P(1 + r/1)^(1*2)9680 = P(1 + r)^2Step 4: Substitute the value of P from step 2 into step 3 equation9680 = (10648 / (1 + r)^3) * (1 + r)^2Simplifying the equation:9680 = 10648 * (1 + r)^(-1)Step 5: Solve for r(1 + r)^(-1) = 9680 / 10648(1 + r)^(-1) = 0.90831 + r = 1 / 0.90831 + r = 1.0999r = 1.0999 - 1r = 0.0999Step 6: Find the amount after 1 2/5 years (A3)To find the amount after 1 2/5 years, we can use the formula:A3 = P(1 + r/n)^(nt)A3 = (10648 / (1 + 0.0999)^(1*7/5)Simplifying the equation:A3 = 10648 / (1.0999)^(7/5)A3 = 10648 / 1.0999^(7/5)A3 = 10648 / 1.0999^(7/5)A3 = 10648 / 1.4558A3 ≈ 7316.85Therefore, the amount after 1 2/5 years (A3) is approximately Rs. 7316.85.Hence, the correct answer is A: Rs. 9050.
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A sum amounts to Rs. 9680 in 2 years and to Rs. 10648 in 3 years respectively at compound interest. What will be the amount if the same sum is invested for 1 2/5 years at the same rate of compound interest?a)Rs.9050b)Rs.9150c)Rs.9215d)Rs.9251Correct answer is option 'B'. Can you explain this answer?
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A sum amounts to Rs. 9680 in 2 years and to Rs. 10648 in 3 years respectively at compound interest. What will be the amount if the same sum is invested for 1 2/5 years at the same rate of compound interest?a)Rs.9050b)Rs.9150c)Rs.9215d)Rs.9251Correct answer is option 'B'. Can you explain this answer? for CLAT 2025 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about A sum amounts to Rs. 9680 in 2 years and to Rs. 10648 in 3 years respectively at compound interest. What will be the amount if the same sum is invested for 1 2/5 years at the same rate of compound interest?a)Rs.9050b)Rs.9150c)Rs.9215d)Rs.9251Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CLAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A sum amounts to Rs. 9680 in 2 years and to Rs. 10648 in 3 years respectively at compound interest. What will be the amount if the same sum is invested for 1 2/5 years at the same rate of compound interest?a)Rs.9050b)Rs.9150c)Rs.9215d)Rs.9251Correct answer is option 'B'. Can you explain this answer?.
A sum amounts to Rs. 9680 in 2 years and to Rs. 10648 in 3 years respectively at compound interest. What will be the amount if the same sum is invested for 1 2/5 years at the same rate of compound interest?a)Rs.9050b)Rs.9150c)Rs.9215d)Rs.9251Correct answer is option 'B'. Can you explain this answer? for CLAT 2025 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about A sum amounts to Rs. 9680 in 2 years and to Rs. 10648 in 3 years respectively at compound interest. What will be the amount if the same sum is invested for 1 2/5 years at the same rate of compound interest?a)Rs.9050b)Rs.9150c)Rs.9215d)Rs.9251Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CLAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A sum amounts to Rs. 9680 in 2 years and to Rs. 10648 in 3 years respectively at compound interest. What will be the amount if the same sum is invested for 1 2/5 years at the same rate of compound interest?a)Rs.9050b)Rs.9150c)Rs.9215d)Rs.9251Correct answer is option 'B'. Can you explain this answer?.
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