Quant Exam > Quant Questions > A sum of money is lent for 2 years at 10% p.a...
Start Learning for Free
A sum of money is lent for 2 years at 10% p.a. compound interest. It yields Rs 8.81 more when compounded semi-annually than compounded annually. What is the sum lent?
- a)1000
- b)1200
- c)1400
- d)1600
- e)None of these
Correct answer is option 'D'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
A sum of money is lent for 2 years at 10% p.a. compound interest. It y...
8.81 = p*(1+5/100)4 – p*(1+10/100)2
Most Upvoted Answer
A sum of money is lent for 2 years at 10% p.a. compound interest. It y...
Given:
- Principal amount = ?
- Time period = 2 years
- Rate of interest = 10%
- Difference in interest when compounded semi-annually and annually = Rs 8.81
To find: Principal amount
Solution:
Let the principal amount be P.
When the interest is compounded annually, the amount after 2 years can be calculated using the formula:
A = P(1 + R/100)^n
where A is the amount, R is the rate of interest, and n is the time period.
So, when interest is compounded annually, the amount after 2 years is:
A1 = P(1 + 10/100)^2
A1 = P(1.1)^2
A1 = 1.21P
When interest is compounded semi-annually, the amount after 2 years can be calculated using the formula:
A = P(1 + R/2/100)^(2*n)
where A is the amount, R is the rate of interest, and n is the number of compounding periods per year.
So, when interest is compounded semi-annually, the amount after 2 years is:
A2 = P(1 + 5/100)^4
A2 = P(1.05)^4
A2 = 1.21550625P
The difference in interest between compounding annually and semi-annually is:
A2 - A1 = Rs 8.81
Substituting the values of A1 and A2, we get:
1.21550625P - 1.21P = 8.81
0.00550625P = 8.81
P = 8.81/0.00550625
P = Rs 1600
Therefore, the principal amount lent was Rs 1600.
Answer: Option (d) 1600.
- Principal amount = ?
- Time period = 2 years
- Rate of interest = 10%
- Difference in interest when compounded semi-annually and annually = Rs 8.81
To find: Principal amount
Solution:
Let the principal amount be P.
When the interest is compounded annually, the amount after 2 years can be calculated using the formula:
A = P(1 + R/100)^n
where A is the amount, R is the rate of interest, and n is the time period.
So, when interest is compounded annually, the amount after 2 years is:
A1 = P(1 + 10/100)^2
A1 = P(1.1)^2
A1 = 1.21P
When interest is compounded semi-annually, the amount after 2 years can be calculated using the formula:
A = P(1 + R/2/100)^(2*n)
where A is the amount, R is the rate of interest, and n is the number of compounding periods per year.
So, when interest is compounded semi-annually, the amount after 2 years is:
A2 = P(1 + 5/100)^4
A2 = P(1.05)^4
A2 = 1.21550625P
The difference in interest between compounding annually and semi-annually is:
A2 - A1 = Rs 8.81
Substituting the values of A1 and A2, we get:
1.21550625P - 1.21P = 8.81
0.00550625P = 8.81
P = 8.81/0.00550625
P = Rs 1600
Therefore, the principal amount lent was Rs 1600.
Answer: Option (d) 1600.
Free Test
FREE
| Start Free Test |
Community Answer
A sum of money is lent for 2 years at 10% p.a. compound interest. It y...
A sum of money is lent for 2 years at 10% p.a. compound interest. It yields Rs 8.81 more when compounded
semi-annually than compounded annually. What is the sum lent?
semi-annually than compounded annually. What is the sum lent?
|
Explore Courses for Quant exam
|
|
Similar Quant Doubts
A sum of money is lent for 2 years at 10% p.a. compound interest. It yields Rs 8.81 more when compounded semi-annually than compounded annually. What is the sum lent?a)1000b)1200c)1400d)1600e)None of theseCorrect answer is option 'D'. Can you explain this answer?
Question Description
A sum of money is lent for 2 years at 10% p.a. compound interest. It yields Rs 8.81 more when compounded semi-annually than compounded annually. What is the sum lent?a)1000b)1200c)1400d)1600e)None of theseCorrect answer is option 'D'. 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 is lent for 2 years at 10% p.a. compound interest. It yields Rs 8.81 more when compounded semi-annually than compounded annually. What is the sum lent?a)1000b)1200c)1400d)1600e)None of theseCorrect answer is option 'D'. 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 is lent for 2 years at 10% p.a. compound interest. It yields Rs 8.81 more when compounded semi-annually than compounded annually. What is the sum lent?a)1000b)1200c)1400d)1600e)None of theseCorrect answer is option 'D'. Can you explain this answer?.
A sum of money is lent for 2 years at 10% p.a. compound interest. It yields Rs 8.81 more when compounded semi-annually than compounded annually. What is the sum lent?a)1000b)1200c)1400d)1600e)None of theseCorrect answer is option 'D'. 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 is lent for 2 years at 10% p.a. compound interest. It yields Rs 8.81 more when compounded semi-annually than compounded annually. What is the sum lent?a)1000b)1200c)1400d)1600e)None of theseCorrect answer is option 'D'. 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 is lent for 2 years at 10% p.a. compound interest. It yields Rs 8.81 more when compounded semi-annually than compounded annually. What is the sum lent?a)1000b)1200c)1400d)1600e)None of theseCorrect answer is option 'D'. Can you explain this answer?.
Solutions for A sum of money is lent for 2 years at 10% p.a. compound interest. It yields Rs 8.81 more when compounded semi-annually than compounded annually. What is the sum lent?a)1000b)1200c)1400d)1600e)None of theseCorrect answer is option 'D'. 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 is lent for 2 years at 10% p.a. compound interest. It yields Rs 8.81 more when compounded semi-annually than compounded annually. What is the sum lent?a)1000b)1200c)1400d)1600e)None of theseCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A sum of money is lent for 2 years at 10% p.a. compound interest. It yields Rs 8.81 more when compounded semi-annually than compounded annually. What is the sum lent?a)1000b)1200c)1400d)1600e)None of theseCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for A sum of money is lent for 2 years at 10% p.a. compound interest. It yields Rs 8.81 more when compounded semi-annually than compounded annually. What is the sum lent?a)1000b)1200c)1400d)1600e)None of theseCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of A sum of money is lent for 2 years at 10% p.a. compound interest. It yields Rs 8.81 more when compounded semi-annually than compounded annually. What is the sum lent?a)1000b)1200c)1400d)1600e)None of theseCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A sum of money is lent for 2 years at 10% p.a. compound interest. It yields Rs 8.81 more when compounded semi-annually than compounded annually. What is the sum lent?a)1000b)1200c)1400d)1600e)None of theseCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice Quant tests.
|
|
Explore Courses for Quant exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup