Quant Exam > Quant Questions > A sum of money lent at compound interest for ...
Start Learning for Free
A sum of money lent at compound interest for 2 years at 20% per annum would fetch Rs.723 more, if the interest was payable half yearly than if it was payable annually. The sum is ____
- a)Rs. 20000
- b)Rs. 15000
- c)Rs. 30000
- d)Rs. 45000
- e)None of these
Correct answer is option 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
A sum of money lent at compound interest for 2 years at 20% per annum ...
sum – Rs.x
C.I. compounded half yearly = (4641/10000)x
C.I. compounded annually = (11/25)x
(4641/10000)x – (11/25)x = 723
x = 30000
Most Upvoted Answer
A sum of money lent at compound interest for 2 years at 20% per annum ...
Compound Interest Problem
Given:
- Time period = 2 years
- Annual interest rate = 20%
- Interest payable half yearly
- Difference in interest = Rs. 723
To find: The principal amount
Solution:
Let the principal amount be P.
We know that the formula for compound interest is:
A = P(1 + r/n)^(nt)
Where,
A is the amount
P is the principal amount
r is the rate of interest
t is the time period in years
n is the number of times the interest is compounded per year
Annual Interest:
If the interest is payable annually, then the formula becomes:
A = P(1 + r)^t
= P(1 + 0.20)^2
= P(1.44)
= 1.44P
Half Yearly Interest:
If the interest is payable half yearly, then the formula becomes:
A = P(1 + r/2)^(2t)
= P(1 + 0.10)^4
= P(1.4641)
= 1.4641P
Difference in Interest:
The difference in interest between the two cases is Rs. 723.
Therefore,
1.4641P - 1.44P = 723
0.0241P = 723
P = Rs. 30000
Therefore, the principal amount is Rs. 30000.
Answer: Option (c) Rs. 30000
Given:
- Time period = 2 years
- Annual interest rate = 20%
- Interest payable half yearly
- Difference in interest = Rs. 723
To find: The principal amount
Solution:
Let the principal amount be P.
We know that the formula for compound interest is:
A = P(1 + r/n)^(nt)
Where,
A is the amount
P is the principal amount
r is the rate of interest
t is the time period in years
n is the number of times the interest is compounded per year
Annual Interest:
If the interest is payable annually, then the formula becomes:
A = P(1 + r)^t
= P(1 + 0.20)^2
= P(1.44)
= 1.44P
Half Yearly Interest:
If the interest is payable half yearly, then the formula becomes:
A = P(1 + r/2)^(2t)
= P(1 + 0.10)^4
= P(1.4641)
= 1.4641P
Difference in Interest:
The difference in interest between the two cases is Rs. 723.
Therefore,
1.4641P - 1.44P = 723
0.0241P = 723
P = Rs. 30000
Therefore, the principal amount is Rs. 30000.
Answer: Option (c) Rs. 30000
Free Test
FREE
| Start Free Test |
Community Answer
A sum of money lent at compound interest for 2 years at 20% per annum ...
C 30000
|
Explore Courses for Quant exam
|
|
Similar Quant Doubts
A sum of money lent at compound interest for 2 years at 20% per annum would fetch Rs.723 more, if the interest was payable half yearly than if it was payable annually. The sum is ____a)Rs. 20000b)Rs. 15000c)Rs. 30000d)Rs. 45000e)None of theseCorrect answer is option 'C'. Can you explain this answer?
Question Description
A sum of money lent at compound interest for 2 years at 20% per annum would fetch Rs.723 more, if the interest was payable half yearly than if it was payable annually. The sum is ____a)Rs. 20000b)Rs. 15000c)Rs. 30000d)Rs. 45000e)None of theseCorrect answer is option 'C'. Can you explain this answer? for Quant 2024 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about A sum of money lent at compound interest for 2 years at 20% per annum would fetch Rs.723 more, if the interest was payable half yearly than if it was payable annually. The sum is ____a)Rs. 20000b)Rs. 15000c)Rs. 30000d)Rs. 45000e)None of theseCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A sum of money lent at compound interest for 2 years at 20% per annum would fetch Rs.723 more, if the interest was payable half yearly than if it was payable annually. The sum is ____a)Rs. 20000b)Rs. 15000c)Rs. 30000d)Rs. 45000e)None of theseCorrect answer is option 'C'. Can you explain this answer?.
A sum of money lent at compound interest for 2 years at 20% per annum would fetch Rs.723 more, if the interest was payable half yearly than if it was payable annually. The sum is ____a)Rs. 20000b)Rs. 15000c)Rs. 30000d)Rs. 45000e)None of theseCorrect answer is option 'C'. Can you explain this answer? for Quant 2024 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about A sum of money lent at compound interest for 2 years at 20% per annum would fetch Rs.723 more, if the interest was payable half yearly than if it was payable annually. The sum is ____a)Rs. 20000b)Rs. 15000c)Rs. 30000d)Rs. 45000e)None of theseCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A sum of money lent at compound interest for 2 years at 20% per annum would fetch Rs.723 more, if the interest was payable half yearly than if it was payable annually. The sum is ____a)Rs. 20000b)Rs. 15000c)Rs. 30000d)Rs. 45000e)None of theseCorrect answer is option 'C'. Can you explain this answer?.
Solutions for A sum of money lent at compound interest for 2 years at 20% per annum would fetch Rs.723 more, if the interest was payable half yearly than if it was payable annually. The sum is ____a)Rs. 20000b)Rs. 15000c)Rs. 30000d)Rs. 45000e)None of theseCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Quant.
Download more important topics, notes, lectures and mock test series for Quant Exam by signing up for free.
Here you can find the meaning of A sum of money lent at compound interest for 2 years at 20% per annum would fetch Rs.723 more, if the interest was payable half yearly than if it was payable annually. The sum is ____a)Rs. 20000b)Rs. 15000c)Rs. 30000d)Rs. 45000e)None of theseCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A sum of money lent at compound interest for 2 years at 20% per annum would fetch Rs.723 more, if the interest was payable half yearly than if it was payable annually. The sum is ____a)Rs. 20000b)Rs. 15000c)Rs. 30000d)Rs. 45000e)None of theseCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for A sum of money lent at compound interest for 2 years at 20% per annum would fetch Rs.723 more, if the interest was payable half yearly than if it was payable annually. The sum is ____a)Rs. 20000b)Rs. 15000c)Rs. 30000d)Rs. 45000e)None of theseCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of A sum of money lent at compound interest for 2 years at 20% per annum would fetch Rs.723 more, if the interest was payable half yearly than if it was payable annually. The sum is ____a)Rs. 20000b)Rs. 15000c)Rs. 30000d)Rs. 45000e)None of theseCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A sum of money lent at compound interest for 2 years at 20% per annum would fetch Rs.723 more, if the interest was payable half yearly than if it was payable annually. The sum is ____a)Rs. 20000b)Rs. 15000c)Rs. 30000d)Rs. 45000e)None of theseCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice Quant tests.
|
|
Explore Courses for Quant exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup